Steadfast FinancesWe're Only Halfway Through the Foreclosure Problem

We’re Only Halfway Through the Foreclosure Problem

Filed in Consumer Education , Financial Crisis , Real Estate 1 comments

For those who believe the financial crisis has passed us by and the real estate market is set for a super quick rebound, here’s an unpleasant dose of reality for you.

  • For every 1 family who got a government mandated mortgage modification, 10 families still lost their homes.
  • 1.7 million families lost their homes in 2009 due to foreclosure.
  • 1.8 to 1.9 million families will lose their homes 2010 due to foreclosure.
  • More than 200,000 households are going into foreclosure every month.

Truth is, an additional 200,000 homes are coming on the market nationwide at below market prices (foreclosures and REO homes usually sell below Realtor and For Sale By Owner homes), and will more than likely continue to push home prices lower.

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So next time a Realtor or mortgage broker tells you that the market is turning around and now is the time to get in (like one Realtor told me over the weekend), take it with a grain of salt.

I’m not suggesting that every regional market conforms to national statistics, because they don’t, but what I am suggesting is that you do your own due diligence, and learn as much as you possibly can about a specific area so you know when your Realtor and/or mortgage broker is giving you accurate information, or giving you a semi-accurate sales pitch hoping to make a fat commission on your lack of knowledge.

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Posted by CJ   @   15 April 2010 1 comments
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