Monday, March 26, 2007

Foreclosures Still Increasing

From Bloomberg:

U.S. homeowners are falling behind on their payments 33 percent faster than they did last year, according to a report by California-based RealtyTrac, which researches data on Americans entering the foreclosure process.

In February, foreclosure proceedings -- from default notices for late payment to auctions and repossessions -- rose 12 percent from a year earlier, affecting 130,786 properties, or one in every 884 U.S. households, RealtyTrac said.

Falling or little-changed home prices are making it difficult for homeowners to sell or get new mortgages on homes they bought or refinanced with adjustable-rate mortgages.

It's important to note that we're still in an economic expansion, albeit a slower one. That means if we hit a recession, we're in for some scarier numbers.