1.1 Million People Are Projected to Lose Homes to Foreclosure & Repossession in 2010

Some felt that the economy was better off because foreclosures recently peaked in April. According to RealtyTrac, a company that markets foreclosures online, the total number of foreclosure filings fell by 9 percent from March to April of 2010. Relative to the same time last year, this is a 2 percent decline.

The problem the government is facing now is that while foreclosures have peaked, repossessions are starting to rise. During the month of April, the number of repossessions reached an all-time high of 92,432. That number represents a 45 percent increase over April of 2009. If numbers continue to grow at this pace, there will be 1.1 million homes repossessed in 2010.

Of course, this estimation is a stretch. Assuming that repossessions will continue at this pace is probably an overestimate. The numbers are alarming nonetheless.

"There were two important milestones in the April numbers that show foreclosure activity has begun to plateau, but at a very high level that will not drop off in the near future," said RealtyTrac CEO James Saccacio.

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Nicolas Cage
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Regis Philbin
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Mel Gibson
Mel Gibson first put his Greenwich, Connecticut mansion on the market in 2007 for $39.5 million. His Old Mill Farm is a classic estate that is one of the last manor homes in Greenwich. The home is on 77 acres of land which includes formal gardens, a maze, pool, tennis court, greenhouse, stable staff houses, log cabin and a pond. The home itself is an Elizabethan-inspired Tudor mansion of 15,800 square feet and the property has 15 bedrooms and 18 bathrooms total. The great hall has a 40-foot cathedral ceiling with a stone minstrel's gallery, walk-in fireplace and leaded glass ceilings. Gibson reduced the price by $4.5 million to $35 million last September but it is still on the market. View Pictures

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Dylan McDermott
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Kimora Lee Simmons
Model, designer and professional diva, Kimora Lee Simmons has put her home in the Beverly Hills Post Office area on the market.The former wife of rap mogul Russell Simmons paid the $5.9 million asking price for the home just a couple of years ago. The "country English" style home has five bedrooms and a casually luxe feel. The home was originally on the market last summer for $7.75 million but is now listed at $6.9 million.
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Faith Hill and Tim McGraw
The couple put their mansion in the private community of Beverly Park in Beverly Hills on the market last October. They bought the home for $6.2 million in 2003. The home has six bedrooms with tasteful cream and beige public rooms offset by a dramatic bordello red sitting room and a cutsey pink breakfast room. The home includes a gym. Their three girls' rooms have collections on display and plenty of room for tea parties and sleepovers. The property is over four acres that includes gardens and a pool area. The couple has listed this home for $14.8 million and it is still at the same price although it may need a price cut to sell since there are several other mansions for sale in the area.
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Billy Baldwin
Billy Baldwin and his wife singer Chynna Phillips (who sang in Wilson Phillips) put their suburban house in Bedford Corners, New York on the market last year. The home is a renovated 19th century carriage house on 4.36 acres and it has five bedrooms. The couple picked up the family home in February of 2005 for $3.35 million and first listed at $3.895 million but now the home is for sale for $2.995 million.
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50 Cent
Rapper 50 Cent has been trying to sell Mike Tyson's former home in Farmington, Connecticut for several years. 50 Cent bought the home for $4.1 million and is said to have spent several million more on renovations. The huge home has 19 bedrooms, four kitchens, a movie theater, and a large disco. It was listed at $18.5 million in 2007 and is still on the market for $14.5 million.
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Diane Keaton
Oscar-winning actress Diane Keaton has already dropped the price on her meticulously-restored Beverly Hills Spanish Colonial Revival mansion even though it's only been on the market for a short time. Built in 1927 by architect Ralph Flewelling, the 7,145-sq.-ft. seven-bed, nine-bath spread features an inner courtyard with a fountain separating the kitchen and family room on one side from the media room, den and staircase leading to the upstairs. It was first listed at $12.95 million in March and is now on the market for $11.995 million.
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Victoria Gotti
Victoria Gotti's home has been trying to sell her Old Westbury, New York home since 2005, right around the time of her television show "Growing Up Gotti." Back then she wanted $4.4 million for the six-acre property which includes a five-bedroom white brick house, a pool with waterfalls, a tennis court, a guest house, a gazebo with a pond, a stable/paddock, and a playground. The house was built in 1993 and looks like it hasn't been repaired since. Gotti has dropped the price several times and the home is now listed as accepting offers between $2.9 and $3.2 million.
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Repossessions are expected to remain high even though foreclosures are remaining steady in part because banks are expected to work through a backed-up list of properties they were supposed to be repossessed in the past. When the number of foreclosures got too high, they simply allowed some of the repossession deals to linger.

Here are some other things that might be taken into account in terms of determining the eventual national rate of repossession:

1. Walkaways – some people just walk away from their homes instead of dealing with an "upside down loan" (where you owe more than what the house is worth) or an unaffordable mortgage. This accounts for about one out of every three foreclosures.

2. Foreclosure hot spots – Some places have a worse foreclosure crisis than others. Detroit, for example, has one of the worst foreclosure rates in the nation, typically leading other major metropolitan areas. Hot spots might be driving up the national average.

3. Some states are suffering at historical levels – Arizona has the worst foreclosure rate in the nation. This is not good for a state that is facing economic boycotts after its strong stance against the immigrant community. California had the highest number of foreclosures in America, with 70,000 filings. In Las Vegas, one out of every 60 houses is now vacant. Areas like these might have peaked at their foreclosure rate, while still waiting to peak for repossessions.

Stats like these, unfortunately, prove that the foreclosure problem is not going away any time soon, despite the overall fall in foreclosure rates.

Lawrence Watkins is the CEO of the Great Black Speakers Bureau. For more information, please visit LawrenceWatkins.com.