2010 Foreclosures Down, More Foreclosures Expected in 2011
The above article from AP discusses foreclosure trends in the U.S. and offers predictions, and reasons for them.
Basically, the reporter is drawing a straight line between the number of underwater mortgages and anticipated default rates. While that may be a valid analysis, it does assume that homeowners who are underwater in their mortgages will mostly opt for defaulting rather than waiting the housing price decline out.
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