AP ran a story this morning from RealtyTrac that foreclosures were higher in July than any month since foreclosures have been statistically recorded. Here is the link:

http://m.apnews.com/ap/db_8559/contentdetail.htm?contentguid=ADn6wDlV

Does this suprise anyone? The economy is still in the toilet, despite what so many moronic economists are saying. The housing market is still deteriorating nationally despite what a few absurd indicators show(new Home sales are up! Wow, but new homes are only a ridiculously small percentage of the overall market!)

I have been posting for over a year that the foreclosure "crisis" is only beginning. This is due, in large part, simply to the length of time that it takes for a home to go through the foreclosure process in many states. This can take well over a year and as long as three years, just in New York.

Considering the rising unemployment, general malaise of the economy and continuing reduction of home values; more and more homes will enter the foreclosure process over the coming months and it will take at least until 2011 for the housing market to start to rise on a national level.

The issue is that the many foreclosed homes will have to be sold at a discount to the current market to get them short-sold (if the borrower is still there) or sold out of the bank-owned Real Estate portfolio. This will take a long time and will continue to pressure the housing market for a very long time, regardless of when exactly the economy as a whole, starts to grow again.