Foreclosures; The Worst Quarter in History Despite Low Mortgage Rates
Posted on | October 15, 2009 | 4 Comments
Foreclosures went through their worst quarter in history over the last month despite low mortgage rates and government efforts to keep home owners in their homes. Rick Sharga, a spokesman for RealtyTrac, said “They were the worst three months of all time.” This comes on the heels of many analysts predicting a bottom in the housing market and green shoots ahead.
The Dow Jones Industrial Average just broke 10,000, home prices are increasing in most major cities and all signs point towards the end of the recession right? Not so fast my friend! During the last three months, 937,840 homes received a foreclosure letter which is either a default notice, an auction notice or a bank repossession. This means that approximately 1 in every 136 homes were in foreclosure. Even though many people are “claiming” that things are getting better this is a 5% move higher from the second quarter and a 23% increase when compared to the third quarter of last year.
The most troubling issue is the Making Home Affordable Plan is a strong effort to slow foreclosures and lenders are actually scaling back the amount of repossessions in an effort to allow this government program to work. Even with this being the case we still saw the worst quarter in the history of the United States. Sharga is not as optimistic on home prices as many others as he states, “I don’t see home prices getting much better until 2013.”
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Author: Alan Lake
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4 Responses to “Foreclosures; The Worst Quarter in History Despite Low Mortgage Rates”
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October 15th, 2009 @ 10:43 am
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October 15th, 2009 @ 3:30 pm
This is one reason I think we are no closure to getting out of the woods then we were a year ago.
In fact it looks like all we’ve done is expand the size of the woods.
My personal plan is get out of debt and put money in assets that retain value. Like gold and silver. I follow that market with the widget http://www.learcapital.com/exactprice and it looks to me like it’s in the four digit range to stay.
Of course the other thing to own if you can do so outright is land.
October 15th, 2009 @ 6:32 pm
[...] 30th, 2010 has been talked about in the Senate. After learning that foreclosures had their “worst three months in history” it seems very logical to extend this tax credit to get more buyers in the market. With all [...]
October 16th, 2009 @ 12:21 am
I sooo agree….folks are in trouble some a lot
worse than others. and, I’ma tell ya it’s going to get worse far worse I say. Decipher the media and prepare yourself big time!