Spring forward, fall back: Resetting the Foreclosure Clock

There was a time when CENTURY 21, the world's largest real estate organization with 110,000 brokers and agents in more than 25 countries, used the slogan, "We sell a home every minute of every day."  On the day after Halloween, transactions per minute have come back into the real estate vocabulary with a frightening, downward spin that could make recent and potential homebuyers run for cover, at least in the UK.  There, an article entitled, Increase in repossessions show housing bubble is close to bursting, published this stunning statement and the statistics on the link below:  "in England and Wales a repossession order is made every seven minutes and an action is entered into every four minutes."

Think It could never happen here?  Don't be so sure... check out the nearly 1.5 million foreclosures, foreclosures, bankruptcies, and tax liens already recorded nationwide on Foreclosure.com and speculation earlier this summer about the prospect of "repossession riots" in the future.  (The Real Estate Cafe's predecessor, the Massachusetts Homebuyers Club helped the federal government sell foreclosed properties in 50 major cities across 25 states in the last real estate recession from 1991 to 1995.)

Regionally an action is entered into every:

• London: 24 minutes
• South East: 30 minutes
• West Midlands: 43 minutes
• North West: 42 minutes
• Eastern Region: 45 minutes
• Yorks and Humber: 47 minutes
• East Midlands: 58 minutes
• South West: 64 minutes
• Wales: 81 minutes
• North East: 87 minutes
• Merseyside: 153 minutes

Regionally a repossession order is made every:

• London: 37 minutes
• South East: 45 minutes
• West Midlands: 61 minutes
• North West: 66 minutes
• Eastern Region: 68 minutes
• Yorks and Humber: 80 minutes
• East Midlands: 88 minutes
• South West: 90 minutes
• Wales: 122 minutes
• North East: 140 minutes
• Merseyside: 207 minutes

Commenting on the figures Vince Cable MP, Liberal Democrat Shadow Chancellor said:

"These figures are deeply worrying. While they are at low levels compared to the early 1990's there are clearly big problems ahead."

"Banks and building societies need to ensure that when individuals take out mortgages they are fully aware of the risks that are involved and of the relevant insurance products."

"At long last the Chancellor has now accepted there is a bubble in the housing market. Now he needs to recognise that for many homeowners it is sadly bursting and that he needs to take action."