Optimistic View



If you're looking for the silver lining on that big cloud blocking out the sun, this report may be it. Improvements in the rankings of foreclosures by state could be a sign the housing problems are about to level off and maybe begin to improve. That means this might be the best time for you to take action if you're going to start buying. If you wait much longer and things do turn around, those good deals will become a thing of the past.

Realistic View

The problem with the view above is that these figures come from the end of 2008. Most of us know the start of 2009 involved massive layoffs from almost every industry in the country which is definitely going to have an impact down the road, especially if unemployment continues to rise and companies continue not to hire new staff. Unemployment benefits don't last forever and a big mortgage is going to be hard to pay off for most families who've been hit by the recession. In this case, the worst might still be yet to come for many families. Consequently, you might want to take the risk and see if the deals get better from an investment point of view.

Other Factors

Remember that part of the original increase in foreclosures involved a wave of adjustable interest rates resetting to their higher levels which caused giant increases in mortgage payments. Another wave of those increases is on the horizon and may bring another round of increases in foreclosures by state.