Tuesday, August 18, 2009

Foreclosures to set a Record in 2009

According to a story on the Washington Post, the rate of home foreclosures in 2009 is expected to crest over 1.8 million (vs. 1.4 million in 2008). The main cause for the sharp uptick in foreclosure filings is not the continuation of the sub-prime crisis---but actually the sharp increase in unemployment rates.

As more and more borrowers are significantly underwater on their homes and have living pay-check to paycheck a prolonged bout of unemployment can really drive them to stop paying the bank and walk away from their home.

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