"The foreclosure bucket is filling faster than it’s emptying," Jay Brinkmann, chief economist of the Washington- based Mortgage Bankers Association, said in an interview. "It will continue through next quarter at least."
This is important to keep in mind. The problem is so large its overwhelming the existing institutions and processes. About half of all real estate transactions in California right now are foreclosures, yet banks are still foreclosing faster than they can sell the houses and debtors are still defaulting faster than banks can foreclose. Not only will it continue through next quarter, at least in some parts of the country it will reach true crisis levels, and you may see the $1 house phenomenon spread beyond Detroid.
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