Foreclosures Spike 112%, No "V-Shaped" Housing Recovery

Foreclosures spiked 112% in Q1, says RealtyTrac. Close to 155,000 families have been foreclosed on this year. The number who have lost houses widens to 655,000 if you broaden the category to include defaults, auction sales, and bank reposessions, up 23% from Q4.

The dire figures will increase pressure on lawmakers to force through a legislative fix. Congress’s latest rescue plan calls for the FHA to insure shaky loans in return for premium payments and equity stakes in the houses they step in to guarantee. The bill will likely go before the house in early May.

See Also: V-Shaped Recovery? You’ve Got To Be Kidding Me

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