Foreclosures Head Up
Inman News is reporting that the number of foreclosures took a leap in March. "The number of new foreclosed residential properties soared 50 percent nationwide in March from the previous month, according to Foreclosure.com."
As is often the case, the greatest weakness isn't in the hot markets. "Foreclosures are most prevalent in areas of the country where home values are not rising, such as Ohio, Texas, South Carolina and Michigan." A similar trend was spotted in the Denver article last week; it is when prices flatten that problems begin.
4 Comments:
ARMs seem to be very popular these days.
http://biz.yahoo.com/ap/050406/on_the_money.html?.v=1
It sounds like everyone is very highly leveraged. I can't understand how a financial institution can finance someone who can't make the interest payment when interest rates are so low.
I lived in Michigan years ago. My mom and I bought a house in the early 1990's and financed with a 5/30 ARM(refinanced to a 15 year fixed soon thereafter). We knew we'd be moving. What we didn't know was that the GM Willow Run plant down the road was closing. It took years to sell the house and we got almost exactly what we had paid for it after 5 years. I ended up renting in Denver for 2 years while we tried to sell the Michigan house. I ended up missing a boom in Denver while my property in MI sat. Always plan for the unexpected!
(ARMs seem to be very popular these days)
Thanks for the link! Very helpful.
(What we didn't know was that the GM Willow Run plant down the road was closing)
The buyers seem to be betting on a perfect scenario and as you unfortunately discovered, that is rarely the case. Thx..Ben
Appraisal inflation:
http://www.msnbc.msn.com/id/7405199/
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