Last month more homes entered into the foreclosure process than during any month in history, up 32% nationwide from a year earlier. Here is the article, paste it into your browser. http://news.yahoo.com/s/ap/20090513/ap_on_bi_ge/us_foreclosure_rates
In one SW FL area one of every 57 homes went into foreclosure, just during the last month - OUCH! As we have seen time and again, South Florida has repeatedly proven to be a crystal ball throughout this ordeal, wonder what that means for the rest of us? Sad truth is that although both foreclosure notices and foreclosures themselves have been on the rise, quite significant rise at that, we are still routinely seeing borrowers across the country get to a point of being 6-36 months delinquent prior to lenders even beginning the process. Even with this reality approximately 70% of the properties foreclosed on nationwide over the past 12 months have not come back on the market yet as there are large incentives to lenders to not realize the inevitable losses (ie suspension of mark to market also apparently allows lenders to claim the $1M loan they foreclosed on was actually secured by a $1M property and they hold that property on their balance sheets as a $1M asset – HAHA!)
Rest assured, many more of your tax dollars will be wasted before market forces are allowed to run their course. I suppose reality is they aren’t really your tax dollars, we are waaaaay beyond that. They are actually your children’s, your grandchildren’s and your great grandchildren’s tax dollars, so why worry we’re Americans, nothing can harm us right?
Well, except for maybe the increasing interest rates our President expressed concerns about being inevitable recently. Hmmm, perhaps we should just keep on plugging along operating as we always have because the same approaches and strategies should work in this market and economy as in the past right? I mean do we really want or need to adjust our approach just because everything around us has changed?
PS with new initiative just announced to encourage more short sales and the enormous shadow inventory being held in limbo by lenders, what will happen as all that distressed property hits the market with ever increasing interest rates, stiffer loan qualification requirements, potential buyers worries about increasing tax rates, decreasing job security and the like? Oh nevermind, we're America nothing can harm us. Suppose I should just resume my Midwestern, good ole boy way of life, huh?
