Today I saw a foreclosed house in miami for only $25,000. It seems like a joke, but it is real. The banks are in deep trouble due to a free fall in real estate prices. Most of a banks assets are in form of property and every day it loses value.
Foreclosure rates are rising. This is triggered by a rise in unemployment. When people lose jobs they cannot pay for the house. "It just means foreclosure rates are going to keep rising," said Patrick Newport. In fact, people need to find jobs so they can pay their mortgage.
Right now, mortgage delinquencies are the cause of our economic recession. Until the home prices rise and people get jobs, we will continue to fall, and conditions will worsen.
No comments:
Post a Comment