RealEstatemageddon

If my old blog articles hadn’t been lost, I would point to an article I wrote almost two years ago predicting what is happening now. It would have happened sooner, but the lenders kept on lending. I am glad I didn’t take the bait.

Nationwide, nearly 877,000 homeowners were in foreclosure so far this year, up 37 percent from the 640,454 who filed last year, ForeclosureS.com said.

Escalating home values from 2000 to 2005 caused buyers to overextend themselves. Many took out short-term, adjustable-rate mortgages for homes they otherwise couldn’t afford and saw their monthly payments balloon as interest rates rose.

Home prices are going to drop dramatically. Even in so called “hot markets”. Watch. 

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