| The numbers are shocking. Home foreclosures rose 81 | | | | taken the largest hit as the market was once well |
| percent over the number of foreclosures in 2007. | | | | over priced. The area is also seeing incredible job loss |
| Foreclosures have become commonplace in many | | | | in the housing and mortgage industries, with all of the |
| areas. Many streets are lined with "bank owned" signs | | | | agents who sold property here no longer able to find a |
| beckoning any interested party to come in for the well | | | | buyer to sell to. |
| below market value priced home that's for sale. | | | | What About The Numbers |
| RealtyTrac.com, a leading foreclosure tracking | | | | One of the keys to remember about the drop in value |
| company, estimated that some 860,000 properties | | | | that many of these areas are seeing due to the |
| were foreclosed on in 2007. This number is only less | | | | number of foreclosures is that prices are down by 20 |
| shocking than what many economists believe will | | | | percent. What does this mean, really? When you |
| happen in the months to come. | | | | consider the amount that home prices have risen, they |
| It Could Get Worse | | | | have only fallen to 2004 levels, not to levels that date |
| The housing market has been blamed for the sudden | | | | back farther, which can be considered a good sign. |
| drop in the economy and the economic recession the | | | | The fact is, house prices have only fallen at the speed |
| country is facing. Yet, the worst is yet to come, some | | | | they appreciated in the previous two years. Prices of |
| economists and others believe. It was not until late in | | | | real estate in the United States are still strong. In |
| the third quarter and into the fourth quarter that | | | | comparison, houses during the Great Depression fell |
| individuals lost their jobs. With the number of layoffs | | | | by a much larger amount, to levels that were no less |
| happening each month, upwards of 400,000 in some | | | | than 15 years off. 15 years of house price appreciation |
| cases, the foreclosure process with these individuals | | | | wiped off. |
| may not even hit the books for another four to six | | | | One of the key problems is negative equity, which 40 |
| months. | | | | percent of individuals who purchased a home in 2006 |
| Where It Is Worst | | | | found themselves battling. Some research shows that |
| Home foreclosures in 2008 happened around the | | | | of the number of foreclosures happening throughout |
| country, affecting individuals from virtually all walks of | | | | 2008 where specifically on homes that were |
| life. Yet, four states topped the list in the number of | | | | purchased in the last two years (2005 and 2006.) |
| properties foreclosed on. This includes Nevada, Florida, | | | | Purchases of up to 70 percent of the four million |
| Arizona, and California, some of the country's most | | | | homes in foreclosure occurred at this time. |
| affluent neighborhoods. 1.1 million properties in these | | | | It is important to see the larger picture when it comes |
| four states received a foreclosure notice (the first step | | | | to home foreclosures in 2008. A wide look shows that |
| in the foreclosure process, which can stretch for four | | | | there is no doubt further foreclosures will happen and |
| to six months.) Of them, about 20 percent of them | | | | that housing market is being affected by the economic |
| were found in California. Home prices in California have | | | | conditions. The question is, just how much. |