Foreclosure Rates Not As Bad As Media Hype?
A question must be asked: Is it as bad as the hype of our media? I have asked many clients and people passing through open houses this simple question: ‘What percentage of homes are you under the impression are in some state of foreclosure?’ The answer I receive is typically between 12% to 35%!
However all statistics show that even in the worst areas, it is not quite cracking 5%. – Terrible to be sure, but not the end of times as it is being touted as.
Minnesota in 2007 – according to the last estimates I have seen, hovered around 1%. That’s still twice that of 2006, which was about 1/2%, or .5%, but still, 1% is very different from the 12%-35% I’m hearing from people, and the feeling I get from the media coverage of the current foreclosure situation.
Why are consumers under this impression in the first place?
Is it election year news hype? Is it the nature of 24-7 news? Does doom and gloom news sell better than status quo or even good news?
I think we need to look at the phrase ‘Some state of foreclosure’ as well. In these cases it is anything from the early stages of late payments to full bank possession.
Anyhow, the article was published by the AP, but can be found on Realty Trac:
http://www.realtytrac.com
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