Real Estate Foreclosures Forecast to Double

The U.S. foreclosure crisis is worsening and the number of foreclosures will even become higher over the next few years, according to the latest forecast by Housing Predictor. The information driven web site is extending its foreclosure forecast into 2011.

The original foreclosure forecast issued by Housing Predictor, which tracks and forecasts more than 250 local housing markets in all 50 states called for more than 2.5 million foreclosures in the nation through 2009 and was then increased to more than 3-million. The research firm is nearly doubling that forecast as the credit crunch combined with rising unemployment and weakening consumer confidence damages real estate markets in the over-whelming majority of the country.

The foreclosure crisis has materialized into possibly the worst financial disaster since the Great Depression, and little is being done to solve the massive problem. An increase in the FHA loan limit and the White House stimulus package will do little to aid millions of homeowners who have already lost their homes in foreclosure and millions of others, who are at risk of losing their homes.

At the height of the Great Depression President Franklin D. Roosevelt created the Home Owners Corporation to provide loans for those having trouble making their mortgage. A similar program is needed to fix the crisis before it sends the U.S. economy into a depression.

The crisis started in subprime mortgages more than a year ago and has spread into new conventional adjustable rate mortgages. A Housing Predictor survey found one in six home owners fear losing their homes to foreclosure.

The foreclosure epidemic is already making an impact in other areas of the economy. Credit card delinquencies are up. Auto payments are being made late in increasing numbers, and consumer confidence is waning.Home prices in the over-whelming majority of local U.S. housing markets are falling. Some markets have already seen prices come down as much as 50% from their peaks. Foreclosures are already at record highs. The damage is leaving neighborhoods all over the country blighted.
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