Foreclosure Waves Dip And Rise From Place To Place

November 19th, 2007

The waves are falling inland but hitting the Seacoast regions. There has been a 100% increase nationally during the third quarter of this year in comparison to what it was in 2006. The rich zones are able to hold the real estate price line. This enables borrowers to refinance or find other escape routes from the mess. The main pillar of strength is the equity of the house. This means the value of the house is more than the loaned amount. There is as yet no accurate counting of numbers.

But in the Seacoast area the foreclosure waves are rising and advancing. Therefore how long will the interior remain unaffected? Already the writing is on the wall. The number of foreclosure listings in Rockingham County in September is 33 as compared to 19 during the same month last year.

In New Hampshire from January to September this year the trend is at par with the national figures. This year it is 1,381 compared to 653 in the previous year.

The sub-prime market is held responsible for this catastrophe. With another 2 million sub-prime mortgages about to reset foreclosure seems inevitable in the near future. Throughout 2008 this tendency of rising waves will continue.

Banks have become alarmed at the sheer number of foreclosures. They are tightening lending rules but that is meaningless to those who are already in the fire. For those who are planning to buy their first house with a loan the going is rough because loans will be hard to get. It was far easier to get an advance last year. Although prices of real estate have considerably fallen sales are not picking up because without loans from where will the buyers get money? It has become a vicious circle.

Across the country 446,726 houses were involved in some sort of foreclosure activity or the other during the last quarter of this year. It means a rise of 100.1% from 2006. The current ratio nationally is 1:196. During this same time 223,233 properties were in the fray.

None has escaped the dragnet of foreclosure woes. The write offs and losses of lending institutions have run into billions with more to come yet. To add insult to injury the dollar is at a record all time low giving an unequivocal warning that there are moreimportant issues other than Iraq.

Via

Search images:

Share and Enjoy: These icons link to social bookmarking sites where readers can share and discover new web pages.