As reported on MarketWatch, foreclosures and/or delinquent mortgages reach 14.41% in the third quarter. Does that surprise you? It does a lot of other people, but not the people who are out in the trenches like me.
I have been telling people for months now that we haven’t even seen the worst of it yet. What we have seen so far is that responsible Americans have been struggling to hold on to their homes and other assets and retirement accounts. Most people have been able to do so for a while, but not anymore. We have reached the breaking point, and while Congress and the White House keep telling us that the recession is over, I don’t think the average person sees it that way or even feels it.
Most sellers that I talk to these days have all been telling me pretty much the same story. They have either lost their jobs or taken severe pay cuts over the last year. Many have attempted loan modifications, but most have not been successful. Most of these people bought or refinanced their houses during the peak of the market, and since then, their incomes have been severely cut or totally lost over the last year.
These are just a few of the reasons that I believe we will keep seeing record foreclosure levels for the near future. The more people struggle to keep their homes, the more likely they will run out of resources and will be forced to lose their properties.
I could go on for a long time about why I believe this situation is happening, but I would rather spend my time focusing on how to help home owners while at the same time take advantage of all the good investment deals that will be coming down the pike over the next year.