10.04.08
Are we headed for a third wave of Foreclosures?
In early 2006 when investors bought houses to flip them and realized the boom was over then came the first wave.
A year later when homeowners used adjustable rate mortgages to buy in 2005 and in 2006 began to see their monthly payments rise then came the second wave.
Now as home prices are falling combined with rising unemployment a new third wave of foreclosures have begun.
House prices in 20 U.S. cities declined in July at the fastest pace on record, according to an S&P/Case-Shiller report issued on Sept. 30.
The S&P/Case-Shiller home-price index dropped 16.3 percent from a year earlier, more than forecast, after a 15.9 percent decline in June. The gauge has fallen every month since January 2007, and year-over-year records began in 2001.
Will this new congressional bailout bill help alleviate foreclosures as intended??
