USA Foreclosure Rate Crossed Limit

Posted in Foreclosure, June 19th, 2007 |

Do you want to make hay while the sun shines? It is the best time to buy a house at dirt-cheap rates. One the one hand developers of new houses are slashing their prices and on the other one after other properties are coming under the hammer of foreclosures. While some regions are still untouched other states are bearing the brunt of the waves. California, Nevada, Colorado, Florida and Ohio are heading the list. There were 39,659 foreclosures in California in the month of May alone.

RealtTrac, a data based company says that in May the foreclosure market made a 90% jump. It was a 19% increase from what it was in April. This is the highest peak touched since the company started tracking figures from 2005.

In April there had been a hardly noticeable fall but that was just the lull before the storm. The foreclosure tidal wave came back with redoubled ferocity, says Saccacio CEO of RealtTrac. What is more – the worst is not yet over. Spring is the traditional time for buying. So if this is the trend now, what is going to happen in the months to follow? Perhaps there are still some communities that have not yet been infected with the virus but the danger is lurking. Shadows are lengthening. This silent pressure is telling on the market and the general health of America’s economy. There are no signs of improvement but rather the situation is slipping out of control.

For quite sometime Americans have been wallowing in the hysteria of consumerism – flat screen television, exotic holidays, dream houses, flashy cars and luxurious renovations to old homes. Banks and finance companies inculcated the borrowing and spending psyche into the mindsets of the people so that money began to flow like water. Money began to circulate like never before. Sub-prime lenders took advantage of this to rope in borrowers with low credibility into their mortgage nets, knowing fully well that they just did not have the means to repay the loan.

Now the financial mess is coming back to haunt the perpetrators. America is reeling under the indigestion that follows over eating and gluttony of consumerism. The ailment is getting worse. There seems to be no panacea in sight. But Man lives by hope and hope alone. Read ‘Storm-Proof Your Financial House’ if you do not want to sink with the ship.

Via