"In what appears to be surprising news for some, Reuters has an article titled
"Americans
brace for next foreclosure wave" whose key premise is that "a painful part
two of the [housing] slump looks set to unfold: Many more U.S. homeowners face
the prospect of losing their homes this year as banks pick up the pace of
foreclosures." Thank the robosettlement,
where in exchange for a few wrist slaps, contract law was thoroughly trampled by
America's attorneys general, but far more importantly to the country's crony
capitalist system, the foreclosure pipeline was once again unclogged, and
whether one does or does not have a legal title on a given house, the banks are
now fully in their right to foreclose on it. What this means also is that
America's record shadow housing inventory, which is far greater than any
fabricated number the NAR reports on a monthly basis, is about to get unleashed
on buyers, shifting the supply curve much further to the right, as up to 9
million new properties slowly but surely appear on the market. And while many
will no longer be able to live mortgage free, forcing them to go out and rent
(and no longer be able to afford incremental iGizmos), it also means that the
prevalent price of homes is about to take another major tumble, making buffoons
out of all those who, once again, called for a housing bottom in early
2012. Here's the simply math: there will be no housing bottom
until the 9 million excess homes clear. Period. Until then it is a
buyer's market, even if said buyer is unable to obtain bank financing, as
ultimately it will be the seller who is forced to monetize (or vacate if
underwater) their home in a world of ever diminishing cashflows. The fear of the
supply onslaught will only make the dumpage that much faster..."
at http://www.zerohedge.com/news/second-foreclosure-tsunami-coming-and-about-kill-any-hopes-housing-bottom
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