Friday, March 12, 2010


I'm sure I've fallen into this trap sometimes, but people really should stop saying things like "the market is threatened" (see headline at story linked below). Prices might be threatened by foreclosures, but the market will presumably still exist. And while falling prices are bad for current homeowners, and potentially bad for people who own the debt, they're good for people who might be interested in buying a house, though potentially very bad for the wider economy.

About 5 million to 7 million properties are potentially eligible for foreclosure but have not yet been repossessed and put up for sale. Some economists project it could take nearly three years before all these homes have been put on the market and purchased by new owners. And the number of pending foreclosures could grow much bigger over the coming year as more distressed borrowers become delinquent and then, if they can't obtain mortgage relief, wade through the foreclosure process, which often takes more than a year to complete.

The administration hasn't done enough to stem foreclosures, and the continued epidemic might seriously damage the economy and the precious banking system. Oh, and lots of people will lose their homes.

Spring fundraiser: