The number of households in foreclosure who lost their home soared in 2007 to about 405,000 households.
This number might sound alarming, but a little perspective is in order :
- Foreclosures were lower prior to last year, which causes the numbers to appear to be soaring only when looked at purely in terms of percentage gains.
- RealtyTrac reports defaults on loans, not on properties, so one household that defaults on a primary loan and an equity line will be counted as two defaults, even though both loans were for the same house. This could artificially inflate foreclosure statistics.
- A foreclosure filing includes default notices, auction sale notices and bank repossessions. One home may fall into each of these categories as it moves through the long foreclosure process. RealtyTrac counts each step along the way separately. This also skews foreclosure statistics.
- The overwhelming majority of homes are not in danger of foreclosure. If slightly more than 1 percent of U.S. homes were in some stage of foreclosure last year, then 99 percent of homes were not. Although some of the hardest hit communities with high concentrations of defaults are suffering, those communities do not reflect California overall.
Foreclosures up 75% in 2007 [CNNMoney]
this is interesting- and kind of scary/sad. The related article regarding foreclosures and evictions is even more scary/sad. Did you guys see it?
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/02/07/MN4NUOE27.DTL&hw=foreclosure+evictions&sn=001&sc=1000
sorry- I meant to say also before my premature submit-ulation: However, your less reactionary perspective on the numbers is refreshing and makes some of the FORECLOSURES ARE COMING TO TAKE OVER THE WORLD type news a little suspect. Who knew foreclosures could compete with Tom Cruise’s kid or Paris Hilton getting pushed off the stage by 50 cent as the next screaming headline.
[...] And now for the postive spin. San Francisco Schtuff points out [...]
hi anna–
i did see that foreclosure/eviction article and i agree, definitely scary/sad and uncertain. you’ll just need to wait for kanye and Madonna to have a baby, then foreclosures will take a back seat for a little while
You make my day!