The Second Foreclosure Tsunami Is Coming, And Is About To Kill Any Hopes Of A "Housing Bottom"
4 April 2012, by Tyler Durden (Zero Hedge)
http://www.zerohedge.com/news/second-foreclosure-tsunami-coming-and-about-kill-any-hopes-housing-bottomExcerpt: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:
Americans brace for next foreclosure wave
4 April 2012, by Nick Carey - Carfield Heigs, Ohio (Reuters)
http://www.reuters.com/article/2012/04/04/us-foreclosure-idUSBRE83319E20120404Many 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 attorney 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.
