IS THE WHOLE WORLD FORECLOSING?

IS THE WHOLE WORLD FORECLOSING?

You heard that we are out of a recession from the newspapers. Can that really be possible? If housing prices increased  slightly it has been because there are fewer homes on the market that are realistically priced for today’s economy. My opinion is that another double dip recession is on the way. Researchers have increased the odds of this happening.

If this plays out, the housing market will drop another 20 percent before any recovery takes place. I know you are hearing the recovery will be in the year 2012. I really don’t see that occurring. In recent weeks, there has been a slowdown in retail, housing, manufacturing, and the job market. Moody expects the unemployment numbers to revert back to the double digits, causing more homes to go into default.

Foreclosures are on the rise even though there is a moratorium on them. This is only temporary and repossessions will occur again as soon as the banks review their paperwork. Too many borrowers aren’t benefiting from loan modifications, since they are too severely troubled.