Posted on Wednesday, April 22, 2009
As of now there are over 900,000 properties currently in foreclosure nationwide, a 71% increase from this time last year. This according to a recent MBA survey.
A RealtyTrac report released today tells us what we already know, that the cities with the highest forelcosure rates are concentrated in California, Florida, Arizona and Nevada. The highest cities within these areas are Las Vagas, Merced California and Cape Coral-Fort Myers in Florida. Phoenix and Port St Lucie Florida are also up there. Also on the top list of States are Illinois, Michigan, Georgia, Utah and Oregon.
So far for 2009 the number of families at risk of losing their home has increased by 24%.
So far statistical indicators are not reflecting the 9 million people the administraions latest modification and refinance plans are supposed to be helping. And the 2 million jobs recently lost could translate to 800,000 new foreclosures. Not to mention the lift on foreclosure moratorium.
But at the end of the day most eveyrone agrees we'll need to get the "garbage" out of our housing system (not to mention the toxic garbage in our financial systems and weak banks in our banking system) before foreclosure numbers will go down, inventory will be absorbed, prices will stabalize and we'll see more sustainable supply and demand ratios. By garbage we of course mean over priced units and borrowers in units they will simply never be able to afford. No doubt our nation's foreclosure statistical indicators will increase as this cleansing happens before we see an overall sustained reduction. Perhaps keeping in mind that the pain is for a good goal - to correct our past indiscretions - and those folks and properties that make sense will hopefully find refuge in government and banking programs that reflect sound business practices, is some solice in this storm.