What are your thoughts about the current foreclosure rates in the US Do you think the real estate market has hit a bottom or do you think property values will continue to decrease?

Some areas of the country have been hit much more severely than others. We haven't hit the bottom yet because mortgages that are in default have been piling up behind the floodgates.

There are thousands of properties whose owners are in default and the lenders haven't yet taken possession of those properties. Banks don't take always take possession of properties that are in default as soon as the owners stop making payments because there are too many for them to take on all at once. They often wait until they have a buyer or take a few at a time in any one region, market and sell them.


The market is extremely depressed in many areas of the country. It is more difficult to qualify for a loan. Many people who would qualify under normal conditions are reluctant to take that step because of the instability in the work force. Young working couples who might have purchased their first home around this time find themselves working in industries that are downsizing due to the poor economy. They see their employers laying off or terminating employees by the hundreds and don't know if their notice will come next. They don't dare take advantage of the first time homebuyers perks.


Some cities have huge numbers of foreclosed properties that aren't selling. Many of those properties have been allowed to fall into disrepair since the owners couldn't afford them in the first place. They drag down the property values of other properties in the area.


Although the conditions vary around the country region by region, we haven't hit the bottom yet.