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Foreclosures actually peaked in 2011. Had the banks had the staff to process foreclosures in a more timely manner, perhaps the OP would have been closer, but they are still pretty far off. 2004 foreclosures were actually 1/6th of the foreclosures we saw in 2011. Unfortunately, some banks took as long as 2 years to take possession of their collateral. But the biggest problem I see with the statement is we really never recovered or "resolved ourselves." We continue to be in the state of flux, a push-pull on regulations that will keep our ability to recover rather subdued.
HELOC's (Home Equity Line of Credits) will cause the next real estate foreclosure wave.
According to federal financial regulators, about $30 billion in home equity lines are due for resets in 2014. In 2015, there are $53 billion worth of these loans resetting, and in 2018, there are a jaw-dropping $111 billion in HELOCs that will see payments increase.
The reset payments on these credit lines can result in payments that go up $500 to $600 or more per month in some cases, and if borrowers can’t make the fully amortizing payments the bank can demand full payment and foreclose on the house.
Just like ARM (adjustable rate mortgages) caused a wave of foreclosures when people's payments jumped $500-$600 per month, this will be the same.
I think it is a hind sight 20/20 comment and I see a new crystal ball prediction about HELOC. I guess I can wait a few years to buy since there will be another wave of foreclosures.
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