Foreclosure Crisis Triumphantly Marching On

October 5th, 2007

The worst foreclosure crisis since the last 16 years continues unabated. Heads are rolling with no signs of respite. Housing analyst warns that one should realize that dreams and reality are different. Without this understanding life becomes painful as is being shown by this foreclosure nightmare.

In Palm Beach County last month there were 1,196 foreclosures – 509 more than in the same month last year or in other words 135% jump. In every 518 households one is stained with it. This report has been released by Census Bureau’s latest survey.

In Martin County 65 foreclosures were listed. Last year it was 29. Thus the increase has been 124% year over year. Due to the small numbers involved the percentage count does not have much actual relevance. One out of 1,123 houses are marked for foreclosure. St. Lucie County was at one time one of the fastest growing counties of USA. Investors were a busy lot in Port St. Lucie during the five years of housing boom. But today a pall of gloom has descended with foreclosures having more that tripled. In September 2006 the number was 124 but this year it is 415. One out of 504 houses is a foreclosed house. In August Palm Beach County recorded 1,210 foreclosures, 524 in St. Lucie, 79 in Martin County.

According to some experts only a healthy property market can remedy the ills in personal finance and mortgage blues. When the housing boom was on in full swing house owners habitually refinanced their houses every year. In this way the house, which was initially valued at $300,000, trebled in value to $900,000. But the wave rose only to fall crashing down into the depths of the ocean of reality. People are no longer surfing the waves. That avenue is blocked. There is neither liquidity nor equity for the asking.

The September figures for foreclosures across states and the country, as a whole has not been released as yet. It is anticipated that Nevada, California and Florida will be leading the race. This is the view of leading online trackers and mortgage banker’s associations. These states were leading rankers during the property boom also. This very fact attracted the greatest number of investors and developers leading to an over supply of houses. When the balance between buyers and sellers was upset the investors just walked off with their mortgages.