Federal Reserve Board Chairman Ben Bernanke has confirmed the Housing Predictor forecast that more than 2 million homes will be foreclosed as a result of the sub prime lending crisis.
In a hearing before the Congressional House Financial Services Committee in Washington D.C., Bernanke essentially confirmed the Housing Predictor forecast issued in early June, saying more foreclosures will occur as a result of fall out from the sub prime debacle.
However, he differed with one congressional committee member's estimates that 1.5 million foreclosures would occur alone in 2007. Bernanke conceded that the rate of foreclosures caused by the nation's sub prime crisis would worsen in 2008 and 2009 without citing any figures, but agreed the figure would go into the millions.
Bernanke made his comments in semi-annual testimony before a congressional committee, which is looking into ways to assist the nation's lending economy to help resolve the sub prime crisis. The Chief Fed Chairman deplored "abusive lending practices and outright fraud" in the wake of near record foreclosures caused by the sub prime crisis.
The Housing Predictor forecast was based on an analysis of the nation's largest metropolitan real estate markets conducted over a one month period by a team of researchers and journalists. Housing Predictor forecasts more than 250 local housing markets in all 50 U.S. states.
The web site is regularly consulted by many of the nation's foremost Wall Street investment houses, mortgage and real estate companies, and consumers for its forecasts, which are updated regularly as local market conditions demand.Foreclosures are at near record levels in Michigan, Minnesota, Ohio and Colorado. Other states that are experiencing the highest number of foreclosures include California, Alabama, Indiana and Mississippi.
However, the fall out from the sub prime meltdown is not extending into all of the nation's housing markets on a widespread scale. Foreclosures are occurring more commonly in lower middle class and poorer neighborhoods. Many housing markets, including vacation and second home markets and higher priced areas are immune from the fall out of foreclosures.
Eighteen states real estate markets are appreciating and an additional 10 states housing markets are showing signs of stabilizing. Many of the foreclosures are occurring as a result of increases in adjustable rate mortgages, and unethical lending practices on the part of some mortgage borrowers and lenders.
Mike Colpitts is the Editor of Housing Predictor. To read the entire foreclosure forecast, check local market forecasts and search real estate listings visit http://www.housingpredictor.com
- Related Videos
- Related Articles
- Ask / Related Q&A
- Life After a Foreclosure
- How to Buy Foreclosures
- Seven Signs That Pre-Foreclosure Investors Look For Every Time
- Orlando Foreclosures – Benefits which make your dream a reality
- Qualifying Through a Bank to purchase Los Angeles bank foreclosures
- Foreclosure, Eviction, and Repossession
- Sales Letter: Based on the Number of Investor Foreclosures and Auctions Salesf
- You CAN learn to rise above the negative propaganda - Media and News BS!
How to Choose the Right Networking Groups for You
By: Ivan Poral | 29/12/2009The first thing you must consider in finding the right networking groups for you is the interest. Make sure that the groups you choose shares similar interest with yours. The best chance to meet prospects prospects, real estate professionals, potential business partners and others who would be a perfect fit for your real estate professional network. Below, are the things to consider in choosing the right group for you to join.
Find Your Dream Home in Miami Beach Foreclosures
By: Mark Ferrer | 29/12/2009There is no denying that Miami Beach foreclosures are some of the most affordable properties in the city. Many people, average homebuyers and investors alike, flock to Miami Beach to take a look at what the city offers in terms of real estate. But while they are certainly cheaper than the average house, foreclosures are not without their shortcomings. You can still find your dream home among them if you follow these simple guidelines.
How to Find Miami Apartments for Rent Minus the Stress
By: Mark Ferrer | 29/12/2009Looking at the number of available Miami apartments for rent can be confusing for some; it’s certainly not for the fickle-minded. But even capricious tenants can find what they are looking for the city’s residential rental market. The only question that remains is, “How can I find that one apartment for me?” Or more importantly, “How can I find the right apartment stress-free?” Here is how.
Two Ways of Investing in Florida Commercial Real Estate
By: Mark Ferrer | 29/12/2009Florida commercial real estate is full of investment opportunities. Now that more properties are becoming affordable, plenty of investors are looking into the state’s commercial real estate for possible investment properties. If you are curious as to how to approach commercial real estate investing, here are two popular ways.
Top Mistakes of Managing Your Own Rental Property
By: Jason Kay | 29/12/2009Managing your own rental property can be somewhat of a challenge especially if you don't know what mistakes are common and how to avoid them. But by avoiding these mistakes you will not only save yourself money, but you will also save yourself a whole lot of headaches. While managing your...
Rights and Responsibilities of a Tenant
By: Lokesh | 29/12/2009The relationship between tenant and the landlord is largely dependant upon the extent to which each of them fulfills their duties and responsibilities. The tenant and the landlord need to be well read about the rental laws applicable for their state. They also need to understand and appreciate that it is futile to talk about one’s right without paying attention to one’s duties and responsibilities.
Many People are Curious to Find out What Happens at Closing
By: marco | 29/12/2009If you have been feeling curious about what happens are closing, you are not alone. Inspect all of the paperwork you will be signing and ask questions if there is something you do not understand. Once the deed, mortgage and all other paperwork are signed and recorded and any money that was owed has been paid, you will be the owner of a home.
Develop Unique Selling Proposition to Rent Houses Fast For More Money (Last in a Series)
By: George Beardsley | 29/12/2009While renting a house and selling Lamborghinis may sound radically different, there are some powerful similarities. If you do it correctly so that price will not become a major element in the buying decision, you must establish in the buyer's mind that he is getting something special. Advertising people call the...
Real Estate Foreclosures Forecast to Worsen
By: Mike Colpitts | 27/11/2007 | Real EstateThe foreclosure crisis will worsen in 2008 in the U.S. hitting a new record high, and will eventually surpass foreclosures in the Great Depression.
American Home Owners Blame Mortgage Companies
By: Mike Colpitts | 03/11/2007 | Press ReleasesAccording to a new opinion poll just released by Housing Predictor, an over-whelming majority of home owners blame mortgage companies for the falling U.S. real estate market.
Mortgage Crisis Poses National Housing Recession Threat
By: Mike Colpitts | 01/10/2007 | Real EstateThe U.S. mortgage melt down has produced America's real estate crisis with falling home prices and record foreclosures, and it now threatens to produce the Nation's worst economic disaster in history, according to a new report by Housing Predictor. The real estate markets rocked for years with double digit appreciation or...
Housing Market Recovery Forecast To Be Slow
By: Mike Colpitts | 25/09/2007 | Real EstateThe nation's housing slow down will be a long haul and a full recovery won't occur until some time in 2009, according to a new report by Housing Predictor, which forecasts more than 250 local housing market futures in all 50 U.S. states. The report comes on the heals of a...
Fed Needs To Cut Rates More
By: Mike Colpitts | 24/09/2007 | Real EstateThe Federal Reserve Board of Governors needs to quickly cut interest rates further in order to stop the U.S. housing market slow down from worsening and avert a national recession, according to a new report by Housing Predictor. The Fed finally acted to cut interest rates by a half a point...
Housing Market Forecast Unchanged
By: Mike Colpitts | 30/07/2007 | Real EstateHousing markets will depreciate an average of 4.2% nationwide in 2007, according to the annual Housing Predictor forecast. The forecast for the decline was first issued in January and after a reassessment at mid-year remains unchanged. An average depreciation rate of 4.2% would be the largest depreciation the U.S. housing markets...
Exclusive Report: Limited Damage In Sub-prime Fall Out
By: Mike Colpitts | 20/07/2007 | Real EstateThe economic damage caused by the fall out from the sub-prime loan crisis is limited, and should not cause major economic damage to the nation's housing markets or greater U.S. economy, according to an exclusive report by Housing Predictor. Housing Predictor forecasts more than 250 local housing markets in all 50...