Frightening foreclosure forecast
A full 3% of U.S. homes could go into foreclosure before the housing meltdown is over, according to a new report [.pdf] from the Pew Charitable Trusts. That's 1 out of every 33. In Nevada, it'll be more like 1 out of 11.
The forecast is based on data from the Mortgage Bankers Association and the Center for Responsible Lending.
In light of those figures, the accompanying forecast of 41 million homes losing value because of surrounding foreclosures, with a total loss in value of $356 billion, seems awfully conservative.
One other figure that stands out, and this one's already in the rear-view mirror: Only three states did not experience at least a 20% increase in foreclosure starts in 2007 — Alaska, Montana, and Vermont.
One out of every 33 homeowners in foreclosure? Sorta reinforces my thinking that soon foreclosure will be a perverse badge of honor.