The foreclosure crisis is getting worse due to continuing job losses

Foreclosures spread into previously safe areas
Relatively unscathed by housing collapse, owners losing homes over unemployment
By ALEX VEIGA
Associated Press
January 27, 2011

The foreclosure crisis is getting worse as high unemployment and lackluster job prospects force homeowners in an increasing number of U.S. metropolitan areas into dire financial straits.

In Seattle, Houston and Chicago, cities that were relatively insulated from foreclosures early on in the housing bust, a growing number of homeowners are falling behind on mortgage payments and finding themselves on the receiving end of foreclosure warnings. Others have already seen their homes repossessed by lenders.

Job loss, rather than time-bomb mortgages resetting to higher payments, has become the main driver behind rising foreclosures.

"We've actually had a sea change in what's causing foreclosures, from the overheated home prices and bad loans to a second wave of foreclosures actually caused by unemployment and economic displacement," says Rick Sharga, a senior vice president at RealtyTrac.

Read the full article at:

http://www.msnbc.msn.com/id/41282712/ns/business-real_estate

It can't be much of a problem. President Obama made no mention of it in his State of the Union address. BBI

er...

K&R

does not fit well into a feel good SOTU.