New Wave of Foreclosures about to hit the Housing Market
-->California Housing Crash, Florida Housing Crash, The Economy, Real Estate May 25th, 2009
We have been telling you this for some time. The next wave of foreclosures is about to hit the housing market in the next few months and it is going to be ugly. CNBC reports the following:
“We’re about to have a big problem,” said Morris A. Davis, a real estate expert at the University of Wisconsin. “Foreclosures were bad last year? It’s going to get worse.”
Economists refer to the current surge of foreclosures as the third wave, distinct from the initial spike when speculators gave up property because of plunging real estate prices, and the secondary shock, when borrowers’ introductory interest rates expired and were reset higher.
“We’re right in the middle of this third wave, and it’s intensifying,” said Mark Zandi, chief economist at Moody’s Economy.com. “That loss of jobs and loss of overtime hours and being forced from a full-time to part-time job is resulting in defaults. They’re coast to coast.”
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