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[Gene GeRue <genegerue AT ruralize.com>]

> I read the article below and wondered about the
> 1.2 mil homes in foreclosure, is that a high
> number?


Foreclosures are substantially up. Many borrowers took loans that put  
their finances on the edge of trouble. A temporary unemployment, a  
medical expense, a projected raise that didn't come through, all and  
more made adjustable rate mortgages good for making the real estate  
industry hum, but hurt many borrowers seduced by hot real estate  
appreciation.

With freedom comes responsibility. Free enterprise inherently  
includes personal failure stories.

The pendulum swings. The secondary loan market may react to losses  
with stronger underwriting requirements. Competition keeps everyone  
on the edge. Those who predict the future most accurately win.

I might note that buying a home today requires expert advice  
including financial. Exceptions noted. Alas, my regard for Realtors  
has diminished over the years. Choosing a good one also requires--and  
taking--good advice. Most people think they know better. A couple  
magazine articles or fifteen minutes with Google makes instant experts.

I find fault with this article only in regard to interest rates. We  
have now the best sustained low-interest rates in the 35+ years I  
have been involved in the real estate business. These are  
extraordinarily low interest rates. And I think they are likely to  
remain low for the foreseeable future.