Wednesday, December 20, 2006

NAR: Concerned Over Foreclosures

by Bill McBride on 12/20/2006 12:24:00 AM

The National Association of Realtors (NAR) joined with the Center for Responsible Lending (CRL) expressing concern about foreclosure rates: NAR Concerned Over Rapid Increase in Foreclosure Rates.

See CRL Report: 2.2 Million Subprime Borrowers Face Foreclosure

From NAR:

The National Association of Realtors(R) said it is concerned over the rising rate of defaults and foreclosures occurring in many areas around the country, and many Realtors(R) believe that some families don't understand the risks of taking out "exotic" mortgages.

In a conference call today with the Center for Responsible Lending and the Leadership Conference on Civil Rights, NAR President Pat Vredevoogd Combs urged consumers to make sure they understand the risks and rewards of all types of mortgages before they make a decision on a loan. ...

Foreclosures are not only a disaster for families but also for communities. Problematic loans are often made in concentrated areas, and high foreclosure rates of single-family homes can seriously threaten a neighborhood's stability and a community's well being. "Foreclosures can lead to high vacancy rates, which in turn, can cause all homes in the neighborhood to lose value," said Combs.