Hello everyone out there in Blogsville:
It is almost two years since this election started and we are almost there!
We have gone through so many Primaries (no, it turns out we don't have 57 states!) and a couple of Conventions and within one month it will be over, with only the cleanup to start. No, not the balloons, the hats, the banners, or confetti, but it will be time to clean up The United States of America!
We have had bailouts, rate decreases, devalued real estate, debates whether we are in a recession, or even god forbid, mention of almost a depression, the stock market tanking, and 401K's are almost down to a 201K!
These things take me back to the late 80's (of course when I bought my own house!) when things took a similar drop but I personally feel this could go deeper and the economic downturn could get worse than back then.
Are Foreclosures REALLY Soaring?
This past sunday (10/5/08) an article titled "Home Foreclosures Soar in the Lehigh Valley" in the Morning Call by Riley Yates and Kevin Amererman revealed some numbers on this subject that were looked at a little bit differently by myself (as if that should surprise any of you out there?!).
It mentions that John Rossi who is an accounting professor at Moravian College says the big bailout is ill considered. He tells of how people are being very logical because if they owe more money than what the house is worth, that they are stopping to make payments. Hmmm. Spoken like a true accountant. Maybe they should have had comments from a mortgage lender instead. Comments that maybe if you stop making payments, how your credit will be ruined for many years but there is no mention of that. If you have no plans of moving for a few years, you should really just ride it out and the market will come back like it always has, no?!
Or how Northampton County is on pace for about 1152 foreclosure filings. They are also on pace for "only" 260 actual takings. This REALLY is only about 22.5%, but the number I will say though is higher in pact years. But keep in mind the percent is somewhat on the lower side.
Let me explain my own take on this.
Many taxpayers EVERY YEAR WAIT to pay their property taxes until the last minute as they feel they making some fantastic money move. Personally I really would not want my name in the newpapers for having a filing for back taxes by the county. This actually happens every year,and to know what that % in past years was, would possibly give one a different view of this.
Well, thats enough of my own thinking, as it is almost 5, and my fingers are growing tired and weary. Let me know what you think, and I promise not to stay away so long. There is too much going on to keep quiet about!