Here is an article on the the "third wave." Apparently, we are in the middle of the 3rd wave of foreclosures.
This article discusses that those with good credit are now foreclosing on their homes because of job losses. (Note, that the Alt-A and Option Arms mortgages will reset next year, meaning a big spike in foreclosures next year in 2010.)
By PETER S. GOODMAN and JACK HEALY
Published: May 24, 2009
As job losses rise, growing numbers of American homeowners with once solid credit are falling behind on their mortgages, amplifying a wave of foreclosures.
In the latest phase of the nation’s real estate disaster, the locus of trouble has shifted from subprime loans — those extended to home buyers with troubled credit — to the far more numerous prime loans issued to those with decent financial histories.
With many economists anticipating that the unemployment rate will rise into the double digits from its current 8.9 percent, foreclosures are expected to accelerate. That could exacerbate bank losses, adding pressure to the financial system and the broader economy.
“We’re about to have a big problem,” said Morris A. Davis, a real estate expert at the University of Wisconsin. “Foreclosures were bad last year? It’s going to get worse.”
Economists refer to the current surge of foreclosures as the third wave, distinct from the initial spike when speculators gave up property because of plunging real estate prices, and the secondary shock, when borrowers’ introductory interest rates expired and were reset higher.
“We’re right in the middle of this third wave, and it’s intensifying,” said Mark Zandi, chief economist at Moody’s Economy.com. “That loss of jobs and loss of overtime hours and being forced from a full-time to part-time job is resulting in defaults. They’re coast to coast.”
I didn't realize Bridgeport was that bad? I thought it was a nicer part of Connecticut. I have never been there though.
What are some areas you want to live? When I worked in NYC, I had a client that lived in Derianne (spelling?), which was really close to NYC. She said it was pretty nice. Seemed really expensive to live there though.
Bridgeport is pretty bad except for a small area in the North near the Trumbull line. Very high unemployment means high property taxes and high crime. Not ideal.
I'd prefer something suburban. With that in mind, Wilton, Darien, Ridgefield.....all of those areas are full of millionaires. That's not a bad thing, but housing prices are incredible there. 400-500k for a 3BR/2BA house where down in NC I could get an even nicer house for around 250k.
Ron Paul 2012
No gym for home, work out floor with 30, but is it for 20 like 30 lb when you no lift it to be for men, for 30 lbs instead? or half is 10 for 20 pounds?
In some areas of Ca. the price of houses fell drastically and some pretty much stayed the same, still outrageous. I'm just soo glad I'll own my house outright in 5 years. Shiite is still really bad out there.