Okay, this is getting a little scary

One in ten mortgages is now in foreclosure or delinquent. We’ve lost 2,000,000 jobs this year and today’s report shows 500,000 lost in November. I think I’ve been pretty confident that we were going to stop digging a deeper hole but now, I don’t know.

To bring this back to real estate, I wouldn’t panic but, if you really do have to sell your house in the near future, you might want to reconsider any offers you may have rejected in the past as too low. If any of those offers are still open, you or your agent might want to make a call.

But that’s just me at 10:30 in the morning between my fourth and fifth cup of coffee. Perhaps the fifth one will cheer me up.

Update: The Wall Street Journal reports on the same story. Nothing here reassures me.

9 Comments

Filed under Foreclosure

9 responses to “Okay, this is getting a little scary

  1. Anonymous

    A little scary?? I am downright petrified. With the continued downward revision of the jobless claims – it seems to me that more foreclosures – not less are on the horizon.

    Pendulums tend to swing too far in either direction – why should the housing market be any different?

  2. Anonymous

    One in ten is at least one payment late OR in foreclosure. The actual number in foreclosure is less than 3%.

    That’s a lot different from one in ten in foreclosure.

    I may be one of those liberals you love to hate, but I do read carefully.

  3. christopherfountain

    maybe that’s why you’re a liberal -you read carefully before flying off the handle, like me. So what happened with this Obama thing?

  4. Anonymous

    So how about correcting your lede, at least?

  5. DebtVulture

    6.99% of homes are 90 or more days delinquent in the third quarter, up from 6.41% in the second quarter and 5.59% during last year’s third quarter. And it isn’t all subprime – prime delinquencies total 4.35% while 20.03% of subprime mortgages are delinquent.

    Foreclosures are 2.97% of inventory, up from 2.75% in the second quarter of 2008 and 1.69% during last year’s third quarter.

    Delinquencies and foreclosures BOTH set records.

    If you are a seller….price accordingly.

  6. christopherfountain

    We’re not always at a computer so corrections take some time. By the way, given that mortgages are historically the last debt borrowers default on, a high delinquincy rate should alarm people. It does me.

  7. xyzzy

    except the government keeps saying they are going to bail out anyone who is going into foreclosure, and they aren’t saying they are going to bail out your Credit Cards, Car Payments, Utilities…

  8. Retired IB'er

    What’s all the hubbub about. It’s all good.

    Haven’t you heard, the US government (led by Paulson and Bernanke, followed lock step by Congress) is going to fix everything through government intervention.

    The US government (both Repub and Dem) are convinced they can centrally plan our way out of this mess.

    And why not, it worked well for the Soviets…

  9. Hiram

    It seems you misspelled “delinquent” in your first line.