1 out of 6 Homes are in Foreclosure!

Posted on October 22, 2008
Filed Under Foreclosures, Real Estate News | 1 Comment

1 out of 6 Homes are in Foreclosure!

Can you imagine?  If the statistics are correct that would mean on average walking up and down any street in America that 1 out of each 6 homes you see are in foreclosure.  That would mean that 1 out of 6 families would be looking for a rental home soon.     Of course, you must realize that some states are far worse off than others – so the idea of 1 in 6 homes in foreclosure in every neighborhood is not true.

For example Foreclosures in Vancouver Washington are much much lower than they are in Sacramento California.  Vancouver Washington Foreclosures are a problem and getting higher but not nearly so many of the formerly “hot spots” like Florida, Colorado, California and other areas.

The root of the problem is that too many homeowners are “under the water” on their home mortgages. They simply owe more than the home is currently worth.  According to Mark Zandi, chief economist at Moody’s Economy.com  at the end of 2006 there were 3 million homes in foreclosure.  By the end of 2006 there were 6.6 million and right now there are 12 million homes in foreclosure.

According to Zillow.com nearly every homeowner who purchased a home in 2006 in Stockton California is now under water.

Statistics show that on a nationwide basis out of every home purchased since early 2003 1/3 of them now have negative equity.

Almost 1/2 of home purchases from 2006 are under water (negative equity).

Even though underwriting guidelines were more stringent in 2008 mortgage originated this year are either on par or worse than those originated in 2007 and 2006.  Their equity is not as you would expect.

According to Zillow.com in some areas or neighborhoods of the country foreclosed homes are upwards of 50% of the homes for sale on the market.

Folks we’re not out of the woods yet.

But, what does this mean?  Is it a good time to buy a home?  In my opinion: Yes.  You just have to buy it at the right price.

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One Response to “1 out of 6 Homes are in Foreclosure!”

  1. Vancouver News » Blog Archive » 1 out of every 6 Households are in foreclosure on October 22nd, 2008 4:05 pm

    [...] to Vancouver Washington Real Estate Information 1 out of 6 homes in America are in foreclosure!   There are more foreclosures now by almost [...]

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