With recent news of economic turbulence, the real estate market is under more scrutiny than ever. Subprime mortgages have been pegged at the center of the Wall Street bailout, and the media is not helping curb public anxiety.
A recent article published on Bloomberg.com offered some seemingly daunting insight into the increasing foreclosure rates. According to the VP of Marketing for a foreclosure listing company, “foreclosure activity is the highest since the Great Depression of the 1930s. "
As mentioned in many articles appearing on ForeclosureResearch.com, it has been proven that even in 2008, many foreclosure listing companies have gathered inaccurate foreclosure statistics that reflect the current rates of the nation. If the government doesn't even know what the foreclosure rate is in 2008, then how would they know the foreclosure rate in the 1930's? Also, consider that this statement is coming from a company that started tracking foreclosures just in the last decade.
In fact, foreclosures have not been at their highest levels since the great depression. They haven't even been at their highest levels in the last 20 years. The highest levels of default and foreclosures were in the late 1980s early 1990s with the savings and loans crisis.
Mario G. Rivera posted an article in the News Chief titled, “Why the crisis when percentage of foreclosures is relatively low?" Rivera made a similar observation and stated in the article that, “nonforeclosures, with on-time-paying homeowners in America, range from 100 million to 130 million households. This would make the percentage of home foreclosures, out of the total number of home buyers, approximately 1 percent at the minimum and 2 percent at the maximum. " He continues by asking the question, “where's the crisis?"