I just finished reading an article published June 11, 2009 by Richard Mullins a writer for the Tampa Tribune. To sum him up the market is still going down and in his word the numbers are increasing. The number of foreclosures in Tamp area is up 32% from a year ago, with one out of every192 home in some phase of foreclosure. The points out that the number are throughout Florida and that Tampa is not as bad as other places such has Homestead. I Homestead he state the numbers at 50% and 1 out of every 105 homes are effected.
I have watched condos in my area go from $200,000 to where they are selling for under 50,000 today. At the high I would never of guess that the fall would be that much or take this long, which brings me to this point. Are the actions to this point slowing down the recovery? Are the action we are doing in the industry like picking at a scab on a wound, should we stop and let it heal?
The few articles I have read the loan modifications are not working in two ways. The first way it the number of modification is not anywhere close to what needs to be effective on the current problem. The numbers I am reading are less then 10% of the numbers needed. So the program is able to reach enough that qualify, this maybe be the only good point after you heard the second problem.
The second problem is that even after the loan modifications the default rate in the first 12 month is higher then expected. With the article today form Richard Mullins can we expect those numbers to go higher? I feel that all the action that has been take to soften the blow to the Real Estate markets has back fired and we are beginning to see the results with more negative news.
What is your thought, what will it take to help this economy and stop the red ink from flowing?