Last Thursday Rick Sharga of Realty Trac appeared on Bloomberg and warned that the recent spate of less-bad housing data is a “false-positive trend” not likely to continue in 2010:
“I think that first quarter of next year we'll see a new wave of foreclosure activity. Delinquencies have been going up – we have five and a half million homeowners who are late on their mortgage payments right now, and many of those, under normal circumstances, would have already been in foreclosure. But the Treasury is asking lenders to make doubly sure that anybody who qualifies for the HAMP program or other modification program gets in those programs. We think we'll probably hit the historic peak next year, in 2010, as a lot of the Option-ARM loans reset, as unemployment related foreclosures peak, before numbers finally start to settle down a little bit in 2011. We're expecting the first quarter to be pretty ugly.”
Watch his interview here.
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