Tuesday, June 17, 2008

CRISIS: Foreclosure Threatens .2 Percent of Homeowners.

2008-06-13) — The U.S. housing crisis reached fever pitch this month, with potential foreclosures up 48 percent compared with May 2007.

The devastation of receiving foreclosure notices has now swept through a full 2/10ths of one percent of American homes. About 1/10th of one percent of owners may lose their homes. For some of those people, it’s actually their primary residence in jeopardy, rather than a second home, rental property or vacation condo.

To add insult to misery, mortgage rates skyrocketed this month to 6.32 percent, a shocking figure a full third of what it was during the Carter administration.

As a result of the flood of homes on the market, real estate agent commissions have dipped precariously, and home buyers increasingly wrestle with the guilt of paying bargain prices for excellent properties.

Market analysts say home prices could plummet as much as another 10 percent by the end of 2009, leaving first-time home buyers to face the specter of owning a more spacious residence. The additional square footage inequitably boosts the burden of cleaning, heating and air conditioning.

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