The Next Foreclosure Wave

Click on the title to link. It is funny because we were just talking with two of our closest friends about this at lunch. We are not near the end of the foreclosure wave, which is one of the reasons we contend the market is not even close to recovery. The peak of the recasting and coinciding payment shock has not even been reached yet. In other words, ARM's that have yet to adjust will not even peak until 2011. We may be underestimating the amount of those people who will already have walked away from their home, but this will still be a significant number that we think will further deepen the downturn in the real estate market.