Foreclosures and other Housing Fun

The collapse of housing prices is claiming new victims, as the number of home sales falls and people get holding the bag. Families owe more on the mortgage than the equity value. If they sold, they would have to pay out the difference in Cold Cash. So, in addition to the victims of foreclosure, millions of families are stuck in places, many times that they don't want to be. This is another consequence of allowing mortgage brokers to offer ARMs and other high interest, exotic mortgages, in order to keep the mortgage bubble going for the last five years. Of course the funny part is that these types of dirty deals have been done with everything, including municipal bonds, even government bonds.

Foreclosures are hitting Florida, and California hard, but they have hit Texas as well. Houston is the biggest city in Texas, and real estate prices have dropped there as well. Austin is the capital of Texas, and Austin homes are also showing a lots of collapsed values. Austin, a city of over 600,000 has lots of oreclosure market. Then, the same can be said about Dallas, Texas.

Look at places like Leesburg, Virginia in Loudon County, it was used as a bedroom community for Washington DC, and now the collapse of real estate is endangering the entire community. Home foreclosures are hitting the real estate market and also the banks. A lot of restructuring will have to go on in areas like Virginia, where industries have been destroyed and everyone commutes to jobs in Washington DC, if they can still get them.