lindi, it sounds like the foreclosures now are due to the natural rate of foreclosures that occur anyway. We still haven’t hit the ARM reset foreclosures in a meaningful way? I think by the end of next year, your BIL will see the ARM resets increasing his business.
Most foreclosures result from job loss, divorce, illness, or addiction, and there is a nornal rate of foreclosure in any market. Due to the boom, the foreclosure rate was unusually low, as anyone with a problem could easily sell. Now we are getting back to more normal levels.
The next step, and where I expect to see a big jump, is when ARMs reset at the same time that prices are dropping.
