Foreclosure1 Blog

One of the most reliable online tracking groups stationed in California reported that across the nation foreclosures have increased by as much as 93% since the previous year. It is clear indicator of the slump in housing health.

Only five states of California, Florida, Georgia Michigan and Ohio bear more than half the burden of this weight. These states recorded 179,599 default, foreclosure and auction notices. It should be taken note that these states have been going through an acute phase of unemployment with job cuts in the automobile industrial sector.

Year-over-year rise in foreclosure operations was appreciably noted in 43 states last month. Some states however seemed healthier than the others. In Kansas and Missouri the filings have increased by 5.39% and 54% respectively. It is not the same everywhere.

A wise approach will be to accept that foreclosures have to come to stay right now. Inevitable many dreams will shatter and become the reality of a nightmare. Overnight homes will disappear. The house ownership bubble was nice while it lasted.

Who pricked the bubble? Low interest was encouraged by the Federal Reserve which boosted up the sub-prime market group where loose loans had been doled out frilled up with baubles of low rates. The beneficiaries were the Wall Street investors who had packaged and sold the same causing the balloon to go up and up while the gas lasted.

Statistics show that the ownership rate in the country remained confined to a narrow belt of 63% to 66% of all the households. This remained steady throughout both phases of economic expansion and recession. During the last decade ownership of homes had shot up to an all time record of 69.2% in 2004. But during the second quarter of 2007 it fell back to 68.2%. It is obvious that the ballooning had been done by the gas pumped in by the sub-prime brokers.

Recently more than 2 million additional owners had suddenly appeared on the scene. The idea of owning a house is great so long as the borrowers can pay the mortgage. But can there be ownership in the true sense until and unless the title deed is clean and clear? The harsh reality is that for about one third of Americans owning a house is impossibility either due to the choice of living simply or because of lack of income.

Related Posts

• Commonly Given Reasons For Foreclosure Crisis
• Politicians Playing Foreclosure Games
• Foreclosure Auctions Give Boost To Sales
• Foreclosures Dominate Conference Of Mayors
• More Than a Score Banks Being Sued In Cleveland for Foreclosures
• Foreclosure Tides Leaving Awash Indebted House Owners