Foreclosures. Things you need to know before buying any property.
This is written in sections showing links to look at. That way things can be seen in context. Plus I am not sure how to put graphs and images on here.
(section showing bubble shapes and reasons to think it is not over yet)
We have been in a housing bubble. This is no news to anyone who has been paying any attention at all to house prices over the last decade. The bubble is deflating. Despite what some people are saying It is not done yet.
Take a look at a typical bubble cycle below. The graph speaks for itself. It shows how it is very unlikely to be at a bottom yet.
Compare the graph above to the graph below.Â
If you notice they look the same except for one thing. The bump up is the false bottom. It is not the real bottom that is likely to take a lot longer to find.Â
(section to show foreclosures near you <or not>)
Check out the foreclosure filings for your state below.
Below we have a heat map showing where the foreclosures are and how bad the situation is.
The Next Wave Of The Housing Crisis: Much More Pain In 2010,
As the Fed begins to unwind its historic intervention, itÂ faces a second wave
of toxic mortgage maturities that could be even more damaging than the last wave
of subprime mortgages. These are the 3 and 5 year Option ARM mortgages,
Pay close attention to the graph on page 2 of the story. It shows the coming foreclosures that are already cooked in.Â
New round of foreclosures threatens housing markethttp://www.washingtonpost.com/wp-dyn/content/article/2010/03/11/AR2010031104866.html?hpid=topnews
About 5 million to 7 million properties are potentially eligible for foreclosure but have not yet been repossessed and put up for sale. That could be 3 years to clear the inventory.
It looks house prices are going to get a lot worse before they get better.
For more foreclosure related news and articles look below,
government encouragement of irresponsible behaviorÂ
(look at the article)
This is the one aspect of foreclosures that is unknown. We have no way of knowing just how much the government will do trying to make bad mortgages become good. If the government truly becomes a giver-nment it is possible that foreclosures will not happen as much as is expected.
The problem is that contracts are by law unchangeable once written unless all involved parties agree to their being changed. Will government programs trying to bail out underwater house buyers be offered? Yes, will they really help or work? I am doubtful.
The last thing that will increase foreclosures is high unemployment. The unemployed find it much harder to pay for their mortgages and that is likely to increase the numbers of foreclosed houses.
I have tried to cover the important aspects. If there is something else needing to me mentioned please comment below.