The End of Market Manipulation...
So, you thought the past few months foreclosure numbers were bad?
They were nothing. The housing market manipulation engaged in by B.O., Timmay Geithner, and The Beard at the Fed has pushed hundreds of thousands of taxpayer-funded refis. That may have helped avoid some foreclosures (though everyone I know personally who's going through a refi could well afford their payments, and they're simply reaping a taxpayer-provided windfall...)
What also slowed down foreclosures was all the public pressure on banks and servicers to be nice. The gloves are coming off now, and the results, well, I think this is just the beginning.
Home prices are going to continue to drop at a pretty steep pace as all this inventory hits the markets. I advise anyone bidding on a house to check the S&P Case-Shiller numbers here, find the current market level, subtract 15% from that, and then find the date that corresponds to the last time houses in that area sold at that level.
The bidding starts there. Around DC, that means bidding on comp homes at prices roughly equivalent to 2002. Welcome to flavor country.