Foreclosures up 45% in January
Author: Joshua Dorkin • URL: http://www.biggerpockets.com/February 21st, 2006 •
We’ve been warning about a possible real estate collapse, and it is starting to look like the numbers are agreeing with us. Foreclosures are increasing rapidly, and there are some pockets where foreclosures make up almost 1 in 500 homes. Sadly, the banks are tempting the uneducated, who get themselves stuck with properties that will inevitably end up in foreclosure. Maybe it is time for the government to step in and help decide if the loans being offered are just too dangerous?
“About 103,540 properties nationwide entered some stage of foreclosure in January, a 27 percent increase from the previous month and a 45 percent increase from January 2005, according to RealtyTrac, an online marketplace for foreclosure properties.”
(Source: Inman.com)
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Joshua Dorkin
Charles Feldman
Ted Karsch.
Troy Schuricht
Anwell Tsai
Richard Warren
Jim Watkins
Foreclosure is surely on the rise because so many people are jumping into the foreclosure support business. As an internet marketer, I see so many sites and blogs like this one http://foreclosuresupport.blogspot.com popping up all over the web.
Just today our main paper here in RI ran an article titled Foreclosed that claims we lead the country in higher-risk mortgages going into foreclosure.
I think the real problem, across the country, is banks that loan to anyone who can fog a mirror, with things like “no doc” 95% financing and ARMs.
You’d think the banks might have learned from what happened in the early 1990s, but I guess not.
Or maybe the ones that learned got out of the business and these are the new guys, the rookies who think “this time it’s different.”
And Aliyu is right, there are many sites out there aimed at helping people stop foreclosure.
All the gloom and doom and “real estate bubble” articles are an easy find. Houston continues to be a hot market. With strict 80% max LTV’s on cash out loans, and being late to the cash-out loans free for all, all together, I dont see the crunch anywhere near all the pesimistic descriptions on the national front. Not yet anyway….
Love the blog, great info.
Thanks for all of your comments
Oh yeah its only getting worse. In my city its seems like the foreclosures are doubling every 6 months, for the part year. The short sales are really hot right now also. I’m wondering if there would be more foreclosures if it wasnt for the short sales. I guess will see what happens in the next few years.