Thursday, April 8, 2010

Multnomah County Defaults Soar

Recent data from the Multnomah County Recorders Office shows notice of defaults growing at an alarming rate as Portland's housing bubble begins its deflationary journey in earnest.

  • Defaults from 2008 - 2009 increased 54.7%

  • Defaults for Q1 2010 vs Q4 2009 increased 26.7%

  • YOY defaults for Q1 2009 vs Q1 2010 increased 23.6%


The actual foreclosure rate has yet to catch up to these numbers as the banks have utilized the suspension of FASB 157 (mark to market accounting) to lie about their balance sheets, book massive ponzi style profits, and pay themselves handsome bonuses.

Many a delinquent loan owner is living payment free until the inevitable occurs. In the end, cold hard cash flow will reign supreme as the reality of stagnant wages fail to service impossible bubble era debts. The shadow inventory of homes headed for the auction block is truly massive.


Even the main stream media is foreshadowing the inevitable, and Bank of America says it will increase an already high amount of monthly foreclosures by a whopping 600% before the end of 2010. If you're holding a bubble era mortgage, I have one simple bit of advice for you:

Sell now or be priced in forever!


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