Media Reports Inflated Number of Foreclosures
In the past months, almost every now and then we have been hearing of the deplorable plight of the people facing foreclosure on their properties due to their inability to pay back their loans. The anchor of the NBC “Nightly News” channel Brian Williams said on August 23rd that the rate of foreclosure has gone up by as much as 93% throughout the nation in the last month when compared with the same period in the previous year.
The entire nation is worried about the dire situation that is taking place in the United States. As of now, it is not clear to what extent the foreclosure crisis will affect the financial economy of the US. Its effects on the lives of various homeowners are also not known. Rise in the foreclosure activities is constantly reported by the RealtyTrac that keeps publishing monthly reports. It is believed that the numbers claimed by RealtyTrac are not accurate as it is being run by people who have absolutely no expertise in the field of real estate.
The experts are of the opinion that media is inflating the total number of foreclosures, relying on the reports submitted by RealtyTrac. In the initial stage there is a delinquency and then the person is at default and gradually enters into the final stage of foreclosure when the house is being put on auction. It is alleged that the RealtyTrac people usually count a single home at least three times which is not right. They do not do it deliberately, but they record every foreclosure activity and what happens is that the house that was found to be delinquent enters into the second stage and the RealtyTrac people record it as another foreclosure activity.
Most of the sources of media bank upon the data released by RealtyTrac and the result is that the number of foreclosure listings are reported to be shockingly high which is untrue. The outrageously increasing number of foreclosure listings is alarming the nation of the bad stain on its economy. The news is not a pleasant one but definitely catches attention. It has also been responsible for causing panic amongst the people. Media is supposed to be the watchdog of the government as well as public activities. They are expected to present a true picture in front of the people. In case of foreclosures, media is reporting inflated rates that can have a negative effect on the mindset of the people all across the world.
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bogus.
credit didn’t tighten because of fear. credit tightened because banks couldn’t maintain their 10-1 ratio. they had to tighten credit access otherwise they’d have exceeded their ratio. what would happen if investors essentially had a margin call on cash? banks would have collapsed… (or what essentially happened to bear sterns). what caused strain on that ratio? mortgage foreclosures.
foreclosures did increase, period. you don’t need realtytrac to follow that. just compare the number of listings for foreclosed homes on the djc from 2002 to 2007. go ahead, open up a djc from any city, and compare.