Foreclosure Mega-Wave to Come?

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By AZGuy


Why More Foreclosures Are on the Horizon

Mark Hanson, or Mr. Mortgage as he is known has just posted a new video on YouTube that contains some striking statistics on foreclosures. Using the state of California he describes why there is another tidal wave of foreclosures in the works. He mentioned that there were 27,541 foreclosure filings in March 2008 in California and 42,704 notices of default (precursors to foreclosure) that were 90 days or more late. If the data are correct, that means there are 150% more notices of deficiency than foreclosures. Sure, not all the notices of deficiency will go into foreclosure, but it's likely that a good chunk (80%+) will. This could indicate that the notice of default filing rate is accelerating which could portend a commensurate acceleration in actual future foreclosure filings.

Another interesting figure from the video - 70,246 early/mid stage foreclosure filings were recorded in California in March, 2008. Compare this to the 20,513 homes sold in the previous month in California. If correct, this means that the number of foreclosure filings in March was 3.5 times greater than the total number of homes sold in the previous month! The filings will mature 60 - 90 days from now and we will see a huge amount of foreclosures coming to fruition and an increase in the number of homes on the market if these numbers are correct.

There are other interesting figures given in this video that you won't see on the nightly news or anywhere else. Watch for yourself and then decide.

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