Foreclosures Up 14% Second Quarter
Business results and national results on things like foreclosures, bankruptcies and loans, are tracked by a system of quarters, or 4 times a year, by tracking the stats of a given movement in numbers once every 4 years. Business cycles are similar, with fiscal business cycles being tracked on a quarterly basis, sometims not totally based on exact quarters, but a randomly placed interval once every 3 months since there are 12months in a year.
Well, it seems that the foreclosure rate has hit a scary new high in the second quarter nationally, so much so that it has gone up a staggering 14%. May not sound like a lot in some other cases, but if you think about foreclosures and how rare they should be in a healthy economy, this number tells us a lot and it tells us we are far from being “out of the woods” when it comes to our economy’s health and prosperity.
There are reports pouring in about families and individuals who have had to give up their homes and the American dream because they simply cannot keep up with their mortgage payments, which also tells us they shouldn’t have been extended that much credit to begin with, which is another problem being focused on now by the major banks who extend mortgage loans to people and businesses, and that is a lending guideline and the integrity of the lending market, since many of these foreclosures still are considered to be in that dreaded subprime market that we’ve heard so much about lately.
The 14% figure is bad enough for the second quarter, but even worse is the fact that when compared to the foreclosure rates just one short year ago, it appears that the foreclosure rates as of late have more than doubled, surpassing the 100% increase mark this year alone. They say that much of the fault is placed on about 5-6 states too, which means these states are experiencing the worst of the mortgage crisis, and they are suffering as far as local economies go as well (my state happens to be included in this list, which doesn’t surprise me with the number of foreclosures I’ve been hearing about from friends and aquaintances alone.)
