October 1, 2008

Foreclosures Not as Bad as Looks

Much of the Country is Doing Better

Although the rate of mortgage foreclosures hit another record high in the second quarter, as well as loans in foreclosure process, a closer look is telling. The Mortgage Bankers Association reports; Only eight states, Nevada, Florida, California, Arizona, Michigan, Rhode Island, Indiana and Ohio, had rates of foreclosure starts that were above the national average.

In fact, and this is key, California and Florida alone accounted for 39% of all of the foreclosures started nationally during the second quarter. Together, the two states made up 73% of the increase in foreclosures between the first and second quarters, according to the MBA.

Of course, this is open to interpretation and Im sure there is much more to come. Still, it seems to me that we may have washed out many of the sub primes that were bad and reached some kind of equilibrium in many parts of the country. Im sure that the mergers and closures will create job loss and home loss in some markets that were strong, like New York City and possible San Francisco, but the rest of the country may have seen the worst.

Thanks for Reading

Howard Bell

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