After mulling the happenings in the U.S. real estate business in 2007, all attention is focused on 2008 U.S. foreclosures and what is going to happen. Surveys conducted and analysis done by experts in the field form the basis for predictions of 2008 U.S. foreclosures. Obviously, judging from the way foreclosure filings turned out in the hot-spots of U.S. real estate month after month, a prudent prediction that no miracles will happen to reduce 2008 U.S. foreclosures largely is on the cards.
The core of the foreclosure crisis is traced to predatory lending practices in general and the role played by Home loan officers for enticing the barrowers into adjustable rate mortgages in particular, by economists. The reasoning apart, it was evident by the factual figures of foreclosure properties in 2007 that the crisis has applied enormous pressure on home owners. 2008 U.S. foreclosures can not be a deviation from the erstwhile story.
According to well-versed realtors and financial experts, the adjustable rate mortgage loans secured by the home owners during boom years will re-set and render another 1.8 million home owners to forfeit their homes to 2008 U.S. foreclosures. Blogs and readers’ forum in various news sites pour in woeful stories from every nook and corner of the country that 2008 U.S. foreclosures will be no different. The U.S. Conference of Mayors held in November 2007 also was unanimous in projecting that 2008 U.S. foreclosures will go up and property values will sink to the tune of $1.2 trillion. Further the impact of 2008 U.S. foreclosures will cause reduction in property tax collection revenue by millions of dollars.
On the economic front 2008 U.S. foreclosures will affect the pace of economic growth by 1.9 per cent, adding up the burden to the economy. Consumer spending and employment figures will have their reflection in 2008 U.S. foreclosures. In earlier years the same economic experts were endorsing the view that housing is the backbone of U.S. economy and it is ironical that they now predict 2008 U.S. foreclosures will break the backbone of enormous home owners.
It can be forecast by logical conclusions that the hot-spots of U.S. boom in real estate, namely California, Florida, Michigan, Nevada, Ohio, Colorado, Georgia and Arizona will be worst hit by 2008 U.S. foreclosures. Therefore it also follows 2008 U.S. foreclosures will change over to a frenzy of home buying by many people in the soft market of these prime States. The never-before offer of prices by 2008 U.S. foreclosures will be the main attraction. The good signs of this trend in 2008 U.S. foreclosures have already started to show.
