Many industry sources will say that the majority of foreclosures due to bad loans have already transpired. Granted, there are still five year ARM's that will be coming due in 2009 and in 2010 ( including one for yours truly). However, for the sake of argument, let's say that the majority of bad loans and three year ARM's have already been foreclosed upon.
Enter unemployment. Many of us know people who have either lost their homes -- or are in the process of losing them -- due to unemployment. Many people in the real estate industry were looking forward to a real estate recovery in 2009. The chances of such a recovery seem to be getting dimmer. After all, it makes no difference how low your interest rate or monthly payment is if you're not making any money.
Any thoughts?
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