Realtors, its easy to be lulled into a false sense of security this time of year. Many of us become dangerously complacent pinning all of our hopes on the idea that…

“it will be better next year….in the spring…the housing market can only get better”

Understand, no one wants this long painful housing depression to end more than Julie and I. I don’t know about you but, we have had enough bad news!

The challenge for all of us come when our hopes for “the better” replaces action. Fortunately (or unfortunately depending on your perspective) we are in the market cycle for a long time to come. The bottom line is….

THIS IS THE NEW NORMAL.

Facts: Every 13 Seconds Another Home Goes Into Foreclosure.

Fact: Nearly 7,000 Foreclosure Filings PER DAY.

Fact: There are Roughly 7,000,000 lender ‘Shadow Inventory’ homes….homes destined to become REO listings.

Fact: Its Simply Impossible That There Will Be Any Sort Of ‘Market Correction’ For Years.

Fact: The FHA Will Have To Raise Standards For Loans, Rates…Credit Scoring etc.

Fact: Over the next 3 years more than 6,000,000 more homes maybe lost to foreclosure (thats in addition to the 7,000,000!)

No amount of positive thinking…or mere ‘hoping’ is going to change those facts. Only one thing will….Educated Action. You will have nothing to fear once you have mastered the skills that THIS MARKET demands.

Important: 2 things…focus on what you are here to give..be of service to others…and….learn the new skills that this new market demands.

Realtors, one last point before you get to this article…..Its NOT Too Late For YOU To Become A REO Listing Agent. The simple fact is that there are more bank controlled homes that must be sold than there are agents who list and sell them! Banks are looking for new…REO Listing Agents NOW. Now the only question is…are YOU ready to become a REO Listing Agent? Watch the FREE Agent REO Secrets video…then grab your FREE Agent REO Secrets book.

Here are exerts from an article sourced: Reuters.com

Every 13 seconds in America, there is another foreclosure filing.

That’s the rhythm of a crisis that threatens to choke off hopes for a recovery in the U.S. housing market as it destroys hundreds of billions of dollars in property values a year.

There are more than 6,600 home foreclosure filings per day, according to the Center for Responsible Lending, a nonpartisan watchdog group based in Durham, North Carolina. With nearly two million already this year, the flood of foreclosures shows no sign of abating any time soon.

If anything, the country’s worst housing downturn since record-keeping began in the late 19th century may only get worse since foreclosures, which started with subprime borrowers, have now moved on to the much bigger prime loan market on the back of mounting unemployment.

In congressional testimony last month Michael Barr, the Treasury Department’s assistant secretary for financial institutions, said more than 6 million families could face foreclosure over the next three years.

“The recent crisis in the housing sector has devastated families and communities across the country and is at the center of our financial crisis and economic downturn,” Barr said.

A September report by a foreclosure task force appointed by Florida’s Supreme Court pointed to a shift in the root cause of foreclosures: “People are no longer defaulting simply because of a change in the payment structure of their loan. They are defaulting because of lost jobs or reduced hours or pay.”

Florida had the nation’s highest rate of homes — 23 percent — that were either in foreclosure or delinquent on mortgage payments in the second quarter, and the report said “the latest news for Florida is horrifying.”

A recent pickup in sales and home prices in some regions has been heralded as a sign that the crisis in residential real estate may be close to bottoming out, after the steepest price decline since at least 1890.

But nearly half of recent sales have been attributed to foreclosures or “short sales” at bargain-basement prices.

Agents, Learn how to easily list and sell Short Sales. Watch the FREE Agent Short Sale Secrets video…then download your FREE Agent Short Sale Secrets book.

The Center for Responsible Lending says foreclosures are on track to wipe out $502 billion in property values this year.

That spillover effect from foreclosures is one reason why Celia Chen of Moody’s Economy.com says nationwide home prices won’t regain the peak levels they reached in 2006 until 2020.

Realtors, are YOU ready to become a REO Listing Agent? Watch the FREE Agent REO Secrets video…then grab your FREE Agent REO Secrets book.

In states hardest-hit by the housing bust, like Florida and California, the rebound will take until 2030, Chen predicted.

“The default rates, the delinquency rates, are still rising,” Chen told Reuters. “Rising joblessness combined with a large degree of negative equity are going to cause foreclosures to increase,” she added.

Anyone doubting that the recovery in U.S. real estate prices will be long and hard should take a look at Japan, Chen said. Prices there are still off about 50 percent from the peak they hit 15 years ago.

Jay Brinkmann, chief economist with the Mortgage Bankers Association, said foreclosures are expected to peak in the second half of 2010. But that forecast is based on a projection that unemployment will begin falling after topping out “barely in double digits by the middle of next year.”

Last week the Labor Department reported the unemployment rate rose to a 26-year high of 9.8 percent in September, in the latest evidence that a turnaround in the jobs market is the missing link in the economic recovery.

Since the start of the recession, the number of unemployed people has soared 7.6 million to 15.1 million. In Florida, unemployment is hovering at a nearly 40-year high of 10.7 percent, led by a steep decline in construction jobs.

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