Things are getting worse less quickly than before. And because of this, things are getting better.

Things are Getting Worse Less Quickly than Before; and Because of this, things are getting better.

Here’s some good news: “Things are getting worse less quickly than before. And because of this, things are getting better.” What an economic outlook!!??

http://news.yahoo.com/s/ap/20090817/ap_on_bi_ge/transunion_mortgage_deliquencies_1

Foreclosures and mortgage defaults are worse than ever. The rate of mortgage defaults is higher this month than last month. The rate of change between this month and last is not as bad as prior months. That’s reason to celebrate that the market has bottomed? This defies common sense.

Let’s say you go to Las Vegas and you bet $1000 and lose it. Then you bet $500 and lost that. Then you turn to your friend and say, “You know, since I just lost $500, that’s reason to be cautiously optimistic – I’m not losing as fast as I used to”.

Expect higher interest rates, more foreclosures, and more loss mitigation loan modifications (which only delay the inevitability of a foreclosure because they don’t reduce principal) through the end of this year and well into next year.

Jeremy Katz, Broker
San Diego House Hunting &
San Diego Commercial REO
http://www.SDHouseHunting.com
Member, NRBA (National REO Brokers Association)
619-497-1834 Office
7840 Mission Center Court #201
San Diego, CA 92108