OC Foreclosure Rate Chart

[msheperd_IHB]

So here I'm staring at a chart that I generated from <a href="http://www.the-marketpulse.com">The-MarketPulse.com - a fully customizable real estate data & information website</a>. This map show the last 12 months of default rates and foreclosure rates for Orange County, and it appears that the trend is still heading upward for defaults. Do you think this is the effect of unemployment or something else?

 

[OCCOBRA_IHB]

[quote author="Housing Data Guru" date=1247189714]So here I'm staring at a chart that I generated from <a href="http://www.the-marketpulse.com">The-MarketPulse.com - a fully customizable real estate data & information website</a>. This map show the last 12 months of default rates and foreclosure rates for Orange County, and it appears that the trend is still heading upward for defaults. Do you think this is the effect of unemployment or something else?</blockquote>


Yes a good portion is unemployment. And as unemployment goes higher a lot more will go. As the 9 million people who are on unemployment some are just barely making the mortgage going through credit cards and 401ks. The government does not show the people on the extensions as that starts to dry up this summer and with a trillion dollars in Alt-a option arms all reseting in the next 2 to 3 years it will be real ugly. Right now every body is trying to buy time but ultimately in the next year or so a lot of people who are way underwater are just going to let go and realize that the market will not be coming back anytime soon and for the market to come back 100 to 300k or more is just not going to happen so just giving up their keys as values continue to plummet is going to make more sense.