I don’t mean to harp on this subject, but as my parents taught me, it’s better to live in reality than a fantasy world. There is no doubt that the second wave of foreclosures is coming.
Jody Shenn of Bloomberg News reported Wednesday that housing prices will again start falling (that’s already started) and about 7 million properties will be seized by lenders.
Let’s face it, loan modifications have a high failure rate and the amount of ARM loans that are resetting in ’10 and ’11 is ginormous. There’s no way at this point to avoid it. The market is going to correct again whether we like it or not. As I’ve stated before, that should be the last great wave of foreclosures. The toxic assets (bad loans) will disappear because they will simply cease to exist by 2012. There will be a lot of opportunity for buyers, even if the tax credit isn’t extended.