It gets worse and worse. Foreclosure filings nearly double,
Foreclosure filings across the U.S. nearly doubled last month compared with September 2006, as financially strapped homeowners already behind on mortgage payments defaulted on their loans or came closer to losing their homes to foreclosure, a real estate information company said Thursday.
And remember, the real wave of ARM resets is yet to come. (ARM resets are adjustable rate mortgages resetting out of their initial, low “teaser” rates to the real interest rate. When this happens mortgage payments can as much as double.) Figure maybe five months after an ARM reset until the homeowner is in such trouble that a foreclosure occurs.
So this is just the beginning of the beginning. And as more and more foreclosed properties come up for auction, prices WILL fall, and fall… until houses are again selling for what they are worth.