The foreclosure rate is rapidly increasing in much of the country as housing markets decline and toxic mortgages adjust. DataQuick reports:
Residential foreclosure activity in California surged to its highest level in more than four years last quarter, the result of slower home sales and flattening prices, a real estate information service reported. Lending institutions sent 26,705 default notices to homeowners in the state during the three-month period ending in September. That was up 28.3 percent from 20,812 for the prior quarter, and up 111.8 percent from 12,606 for 2005's third quarter, according to DataQuick Information Systems.
In response to the rapidly increasing default and foreclosure rate the NAR said in their press release that:
NAR President Pat Vredevoogd Combs urged consumers to make sure they understand the risks and rewards ofall types of mortgages before they make a decision on a loan. She also advised consumers to consult with a Realtor and to participate in mortgage education programs sponsored by Realtors before they buy ahome
We are committed to helping people buy -- and keep -- the home of their dreams, and an educated consumer really can make the best decision,"said Combs, of Grand Rapids, Mich., and vice president of ColdwellBanker-AJS- Schmidt. "Realtors(R) help Americans achieve the dream of homeownership. We work to ensure that homebuyers have access to the proper information so they can fulfill their homeownership goals.
These Realtors are partly to blame for the unacceptable foreclosure rate. A large percentage of Realtors have been promoting exotic (read toxic) mortgages as an affordable method to buy now (or forever be priced out (BS)). For example real estate agent Joe O'Hara was pushing toxic mortgages when he sold a property in Washington, DC.
Or we have David 'Paid Shill' Lereah, NAR's cheif economist who promoted perpetual mortgage debt. He said during the peak of the housing bubble:
"If you paid your mortgage off, it means you probably did not manage your funds efficiently over the years," said David Lereah, chief economist of the National Association of Realtors and author of "Are You Missing the Real Estate Boom?" "It's as if you had 500,000 dollar bills stuffed in your mattress.The Realtors are partly responsible for the fiasco that is the rapidly rising and high mortgage default and foreclosure rate. Their behavior has been despicable as they cheered on homeownership at almost any cost. Wait, it will get worse going into 2007 as more toxic mortgages reset, housing sales and prices continue to decline and the economy takes a turn for the worse.
"He called it "very unsophisticated." (Los Angeles Times Aug 28th, 2005)