If you have been listening to the media, economic, and real estate pundits, then you would have been hearing talks of the foreclosure rate being down and the economic crisis resending in the US and other parts of the world. However, the reality seems to be something different all together.
The first quarter of 2010 has seen the largest jump in foreclosures in the last five years. Foreclosures are up 35% over the same period last year. What is really disturbing is that last year was suppose to be the peak of the foreclosure season and mark the begining of the end for the foreclosure crisis.
However, the numbers don’t seem to support that.
RealtyTrac Inc. said Thursday that the number of U.S. homes taken over by banks jumped 35 percent in the first quarter from a year ago. In addition, households facing foreclosure grew 16 percent in the same period and 7 percent from the last three months of 2009.
More homes were taken over by banks and scheduled for a foreclosure sale than in any quarter going back to at least January 2005, when RealtyTrac began reporting the data, the firm said.
“We’re right now on pace to see more than 1 million bank repossessions this year,” said Rick Sharga, a RealtyTrac senior vice president.
This seems to point to a larger economic problem that is being uncovered by this continuing crisis. The American economic system seems to be broken and the duck tape that the Obama Administration and Congress enacted last year seems to be wearing off as homeowners are not able to keep up with the reduced mortgage rates and many of them are facing interest rate resets as the year goes on.
Invest With Passion has been reporting that the worst was yet to come and it seems like we might be getting to the thick of things now, but this leaves no relief in our hearts to be right about this situation. The economy and the country is on the verge of crisis and it is going to take some serious overhauling of the markets to get and pull the people out of this funk.
But the first thing that can be done is to get all of the media, economic, and real estate pundits to stop lying to the people and start being honest about what is going on. The foreclosure market will continue to grow and dominate the economic landscape for the next two years and this is something that the people and the banking industry is going to have to deal with.
What are your thought?
How do you feel about the current economic market and will it continue to get worst, before it gets better?
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