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Foreclosures Are Going To Get Worse! (See Article Inside)

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posted on May, 25 2009 @ 05:10 PM
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By now we all know that the government and media are lying to us about the depression getting better. If you were on the edge about that here is an article that will make you shake your head in agreement.


Job Losses Push Safer Mortgages to Foreclosure

In the latest phase of the nation’s real estate disaster, the locus of trouble has shifted from subprime loans — those extended to home buyers with troubled credit — to the far more numerous prime loans issued to those with decent financial histories.

With many economists anticipating that the unemployment rate will rise into the double digits from its current 8.9 percent, foreclosures are expected to accelerate. That could exacerbate bank losses, adding pressure to the financial system and the broader economy.

“We’re about to have a big problem,” said Morris A. Davis, a real estate expert at the University of Wisconsin. “Foreclosures were bad last year? It’s going to get worse.”

www.nytimes.com

The point is that no longer are people who were just at risk foreclosing. Now people with good mortgages can't afford them anymore. This means that normal families with normal well paying jobs are losing those jobs. Normal being a married couple with children or a single man/woman with a well paying job.

Times are getting tough and the stock market is no indicator of this. The people are. More and more are losing their jobs and houses because the banks and government have made horrible decisions.

The article goes on to say:

Economists refer to the current surge of foreclosures as the third wave, distinct from the initial spike when speculators gave up property because of plunging real estate prices, and the secondary shock, when borrowers’ introductory interest rates expired and were reset higher.

“We’re right in the middle of this third wave, and it’s intensifying,” said Mark Zandi, chief economist at Moody’s Economy.com. “That loss of jobs and loss of overtime hours and being forced from a full-time to part-time job is resulting in defaults. They’re coast to coast.”

Those sliding into foreclosure today are more likely to be modest borrowers whose loans fit their income than the consumers of exotically lenient mortgages that formerly typified the crisis.

Economy.com expects that 60 percent of the mortgage defaults this year will be set off primarily by unemployment, up from 29 percent last year.
www.nytimes.com

As I have been saying for a long time.
Get ready people as it's going to get worse.




posted on May, 25 2009 @ 05:20 PM
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I personally think what is scarring them more than anything about this is the fact that the foreclosed homes are staying empty!
They can't get anyone to buy them at the outrageous prices they are still trying to get!
We where on our way out to the ranch and we made it a point to count the houses on the way that where still empty we got to 100 and I told them to stop counting.

Most of them had been empty so long that the grasses where up to the windows.(about 3-4 feet tall) It is really sad that so many people are loosing their homes.
The bank's need to get it through their heads that they aren't going to recoup those outrageous prices they charged them in the first place and renegotiate those terms to something that people who are still employed can actually pay in the current environment. But we all know that isn't going to happen anytime soon.
As cruel as it may sound I am going to wait for it to hit them really hard. When they get desperate to off load some of the thousands of properties they have. I am going to jump in and buy up one in cash.



posted on May, 25 2009 @ 05:32 PM
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reply to post by xoxo stacie
 


In my neighborhood alone there is a new house every week or so that goes up for sale. I have counted 23 houses within 2 miles of my house. I keep track of them and only one has sold in the last 3 months.



posted on May, 25 2009 @ 05:40 PM
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So what is the answer? To buy or not to buy? Should we all live in condos and apartments? Or simply buy houses in cash (if we can afford them)? Should people who do have loans stop paying on their houses?



posted on May, 25 2009 @ 06:06 PM
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reply to post by leira7
 


That is something I cannot answer as is it for the people themselves to do.

I just hope no one here on ATS has to make such a hard decision. Then again many already have.



posted on May, 26 2009 @ 02:22 PM
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The want to build a New World and they think the only way to succeed it
is to creat it out of Chaos.....! Like they always did....



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