This is Just the Beginning....
'"Over 8,500 properties in Florida went into foreclosure in the month of June alone," said ForeclosureS.com president Alexis McGee. She added that the problem was being exacerbated by the widespread use of so-called "creative mortgage products" that people used to buy homes they really couldn't afford as prices skyrocketed in overheated coastal markets."
'"Now, price appreciation has gone flat and even reversed slightly and this trend is colliding with rising interest rates. People who bought at or near the market peak are being squeezed out of their homes and speculators find themselves trapped by rising costs and negative cash flows," said Ms. McGee. She pointed out that in Georgia almost 8,900 properties had already been lost in foreclosure."
"McGee said foreclosure acitivity had increased more than 67 percent year over year at the end of the second quarter in California."
"ForeclosureS.com, a northern California based real estate investment advisory firm and publisher of foreclosure property information, reported today that the rising tide of foreclosure activity in southeastern housing markets was an indication that property flippers who bought at the peak of the price appreciation curve were simply walking away from houses they were unable to sell at a profit."
'"We think this is only the beginning of a major shakeout. There are about $400 billion of these exotic loans out there across the country that will reset to market rates this year and cause severe payment shock to homeowners," she added."