Sunday, 4 November 2007

US Housing Crisis Worsens Dramatically

A soaring number of U.S. homeowners struggled to make mortgage payments in the third quarter, with properties in some stage of foreclosure more than doubling from the same time last year, a mortgage data company said Thursday.

A total of 446,726 homes nationwide were targeted by some sort of foreclosure activity from July to September, up 100.1 percent from 223,233 properties in the year-ago period, according to Irvine-based RealtyTrac Inc.

The current figure was 33.9 percent higher than the 333,731 properties in foreclosure in the second quarter of this year.

The number of homes with foreclosure filings in Massachusetts surged more than twelvefold to 9,625 properties from last year, the largest year-over-year increase in the country. The state's number was more than double the second quarter's and was the second highest increase after Delaware.

There was one foreclosure filing for every 196 households in the nation during the most recent quarter, RealtyTrac said.

One foreclosure in every 196 households ?? If the data is correct then this is a sure sign that the US economy is really in the tip. According to most estimates we are only in the opening stages of the US housing downturn with many more home loans set to re-adjust (and fail) in the coming months.

It will only be a matter of time before we see some serious declines in the US stock market as consumer spending drops off significantly. Global growth will slow as the US slows and financial markets, already in crisis, will suffer accordingly- everyone will be affected in some way. Take note !

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