When will the foreclosures end?

Not anytime soon, unfortunately. When the bubble bursts in the housing market, the majority of foreclosures were related to subprime lending. Remember phrases such as “no doc loans”, “liar loans” and “ninja [no income, no jobs, no assets] loans.”

With the economic crisis of 2008, those types of loans have fallen out of favor, so they are not the cause of the present crisis.

The current unabated pace of foreclosures is attributable to unemployment.

In 2008 I presumed the housing market would return to “normal” [not excessive as between 2003 – 2007] in 2010. Well, 2010 has come and gone. In 2010 I presumed the housing market would return to normal come 2012. With the persistently high unemployment rate, I believe foreclosures will continue to be a thorn in the housing market’s and the overall economy’s side.

Be thankful if you have a job and are able to make your monthly mortgage payments. Too many Americans cannot.

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