Foreclosures Up

Realty Trac says foreclosures are up, particularly in Georgia, Colorado, and Indiana:

“The sharp increase in foreclosures in Q1 continues a steady upward trend that we’ve observed since the beginning of last year,” said James J. Saccacio, chief executive officer of RealtyTrac. “Foreclosures have now increased in four consecutive quarters and are on track to go above 1.2 million in 2006, which would push the nation’s annual foreclosure rate to more than 1 percent of U.S. households.”

Saccacio noted that foreclosures actually dipped 13 percent from February to March, evidence that the nation’s foreclosure rate could be leveling off after the long run-up.

Despite the potential good news in the levelling off, Hilzoy at Obsidian Wings sees trouble ahead:

So, to summarize: we have an economy that's incredibly dependent on consumers' ability to acquire mortgage debt. We have consumers who are increasingly indebted. Moreover, their debts are much more likely than a few years ago to take this incredibly risky form: low payments for a few years, and then a huge increase in payments for the next few decades. People who would not assume these risks if they were prudent are doing so. If the housing market keeps soaring, they'll be fine; if not, they'll be screwed.

I certainly hope it all works out! My tuchus is on the line too!