record foreclosures

All we hear about is record foreclosures, why do we continue to let the gov’t prop up inflated home prices?

Another month, another story of record foreclosures.

Um – the government is not propping up inflated home prices. That is why there are record foreclosures.

Nearly all of the foreclosures are happening to people who bought their homes in 2004-2007 or heavily refinanced them during that time. Then 2 things happened. Prices crashed and a recession hit. When you have no income and can’t sell your house because you owe more than it is worth, then foreclosure is the only option. Virtually No one who purchased a home after 2007 is facing foreclosure. In other words there is not a new wave of foreclosures in the making – just many many more to finalize from the huge wave that was started 2 years ago.

record foreclosures