Foreclosures Spike In August
August foreclosures were up 53% from a year earlier, according to RealtyTrac, a company that tracks foreclosure data.
115,292 properties went into foreclosure in August, representing a 53% increase from a year earlier.
That number is the second-hightest monthly foreclosure total of the year, following 117,151 in February.
California foreclosures are up 160% since last year, and the formerly hot Nevada real estate market recorded a 24% increase.
Yes, life is starting to get very exciting for homeowners with those nifty adjustable loans that are (surprise!) actually starting to . . . . adjust!
There will soon be a lot of homeowners experiencing that phenomenon known as “too much month left at the end of the money” as they watch their mortgage payments double!
Think we’re in for a soft landing?
Wait until we see the full effect of the estimated $400-500 BILLION of adjustable loans that are set to adjust this year.
I have seen estimates as high as $2 TRILLION (yes, that was a “T”) of adjustable loans that will adjust in the next two years!
A lot of those loans were originated when rates were below 5%, or were written with “teaser” rates below the then-prevailing rates.
Further compounding the problem is the fact that many of those homeowners bought as much home as they could afford, based upon their initial interest rate.
September 17th, 2006 Posted in About Our Area, Inside Real Estate
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