More Americans are losing their homes. (Yep the economy chuggin along)

[rpannier]

The number of homes entering some stage of foreclosure -- from notice of default to bank ownership --increased 45% in January from the same period a year earlier, according to Irvine, Calif.-based RealtyTrac. That was one new foreclosure for every 1,117 U.S. households.

The number of foreclosures is still low on a historical basis, but it has been rising steadily over the past year, RealtyTrac reported. Job losses in some regions were to blame, but so, too, were risky borrowing practices that left homeowners little wiggle room on their mortgage payments. And with the pace of appreciation stalling and interest rates rising, many economists and industry observers expect the pace of foreclosures to accelerate this year.


scrub states lead the top 3 in forclosures per capita: 1) Georgia, 2) Nevada, 3) Colorado
The disgusting thing about this article is that it points out how you can *ching-ching* cash in on this tragedy because there will be more cheap houses for the wealthy to snap up.

the full article can be found at:
http://realestate.msn.com/buying/Articlenewhome.aspx?cp-documentid=338165>1=7929

[NYC]

1. Adjustable Rate Mortgages.

{Frank Nothaft, chief economist with government-chartered mortgage giant Freddie Mac} estimates one out of every three loans issued in 2005 was an adjustable rate mortgage. Now that we’ve seen 14 consecutive interest-rate increases since June 30, 2004, many of these loan rates are bumping up, increasing the size of mortgage payments.

Nothaft estimates that $500 billion in variable rate mortgages will reset, or rise, sometime this year, leaving many with a payment they can no longer afford...

...Tuccillo: With interest rates expected to rise 3/4 of a point to a point this year, “In six months, you will be able to do more picking and choosing.”