BusinessWeek Online Hot Property blog reports that foreclosures are up in California:
"Lending institutions sent default notices to 12,568 California homeowners during the July-to-September period, up 3.5% from last year's third quarter."
I'm predicting that the foreclosure market will enjoy a new renaissance, even when the rest of the market is cool, thanks to the bankruptcy bill that put new rules into effect last month. Bankruptcy attorneys tell me that many consumers who are not able to get relief from credit card debt will not be able to stay current on their mortgage payments and they forecast a huge increase in foreclosures.
David Lereah, chief economist of The National Assn. of REALTORS®, told reporters that he is uncertain about the impact of the bill on the foreclosure rate, but that it is an open question and he will study the issue. We look forward to his findings. We just wish that NAR had the wisdom to ask their economic talent about such things before supporting that terrible bill in such a wholehearted fashion. (Note: This post appears also on the Real Estate Blog Squad. Typically I do not double post articles, but the nature of the material is so compelling and disturbing that I made an exception in this case.)