Hojin's SW Orlando Real Estate Scoop

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The Next Wave of Foreclosures to Deepen Losses

December 15th, 2008 · No Comments

I’ve heard a lot of real estate professionals say the market is going to recover in the second half of 2009, but I haven’t heard any valid reasons why that’s gonna happen. Unfortunately, I’ve heard a lot good reasons why the current down market will continue for quite some time. According to this piece by 60 Minutes, we’re only half way through this mess because we’re getting ready to start another wave of foreclosures of option arm mortgages. The open arm was real popular with builders during the boom who offered really low teaser rates to start and then would escalate at a later date. It was the perfect mortgage if you knew you were going to sell right away. Well, we know what happened. A lot of those people couldn’t sell right away and they’re getting ready to be foreclosed on and we’re looking at least another 3 years before prices stop falling. I hope it’s sooner, but it’s not looking good from this report.

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Tags: Foreclosures · Market Forecast