Silver Lining May Be Tarnished
The CNN article, November Foreclosures Take a Dip, may have some offsetting news. It seems “Home prices are falling and threaten to drop further through 2008. These trends could add to foreclosures because lower prices mean strapped home owners can’t tap into home equity as easily. Cash-flow shortages can leave them vulnerable. The states with the biggest foreclosure problems remain those from the Sun Belt, where high price appreciation during the boom years left many homes over-valued, and the Rust Belt, where collapsing industries have led to economic stagnation and job loss.”