Thursday, March 06, 2008

More on Record Foreclosures

by Bill McBride on 3/06/2008 10:34:00 AM

Here are a few quotes:

From CNNMoney: Foreclosures hit all-time high

"Declining home prices are clearly the driving factor behind foreclosures, but the reasons and magnitude of the declines differ from state to state," said Doug Duncan, MBA's Chief Economist said in a prepared statement.
From AP: Home Foreclosures Hit Record High

From Bloomberg: U.S. Mortgage Foreclosures Rise as Owners `Give Up'
``U.S. mortgage foreclosures rose to an all-time high at the end of 2007 as borrowers with adjustable-rate loans walked away from properties before their payments rose, the Mortgage Bankers Association said today.

``We're seeing people give up even before they get to the reset because they couldn't afford the home in the first place,'' said Jay Brinkmann, vice president of research and economics for the Washington-based trade group.
These quotes hit on several key points: Declining prices is the driving force behind foreclosures, foreclosures are at record levels and the foreclosure rate is expected to continue to increase, and people are giving up "before they get the reset". All points we've discussed before.