# US Foreclosures......Chilling



## sags (May 15, 2010)

I was reading some US housing websites, and if the assumption the US economy won't get going again until home prices level out is accurate, the US is going to be in for a very long period of a depressed economy.

In Las Vegas, home prices have fallen 60% and are at pre-1970s levels. Even at these prices, buyers are nowhere to be found.

This article of foreclosure facts by Mike Shedlock, contains some sobering statistics.

The average foreclosed home loan has not received payments for 2 years.

There are 4.1 million homes with payments overdue 90 days to 1 year.

Perhaps most startling is that even given these statistics, the number of foreclosures starting is twice the number of foreclosured homes sold...........and most of the foreclosed homes sold end up back in foreclosure. The foreclosure process is going in circles.

http://globaleconomicanalysis.blogs...closure-starts-near-3.html?source=patrick.net

I also read an article that contends the only way out of the mess is to forgive the debt. Banks will go under, and anyone holding mortgage backed derivatives will lose everything, but people will be able to spend again, and the economy will be able to gain some traction.

It sounds crazy.........but it just may be the only solution.

Is it possible they may have to even give the homes away? The banks holding all these foreclosed homes have to maintain them or let them rot away into valueless hulks. The States and municipalities are suffering from lost tax revenues.

Could it ever happen?


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## Jungle (Feb 17, 2010)

Someone would come in and buy all the bad debt. Everything sells if the price is right.


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## KristyW (Sep 7, 2011)

It seems like the unemployment rate has hit the bottom and is staying put around 9.1%. I would expect the foreclosure rate to hit their bottom in 6-months. After that, there will be thousands of foreclosed homes that banks are giving away at reduced rates which is what is driving everyone else's home values down. But I think home prices will hit their bottom in less than a year and slowly start to appreciate. I think some areas will be worse than others in the U.S. depending on number of foreclosed homes, unemployment rates, and how much home values fell.
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Kristy - Has anyone ever used http://www.northamerican.com/ to move?


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