The Foreclosure Debacle

Foreclosures continue their upward climb and the media continues to report the worst the real estate industry has to offer. The latest news comes amidst reports that California has reached a record number of foreclosures. Reports across the board are also reporting foreclosures increasing nationwide.

According to an article published on July 23, 2008 by Reuters, foreclosures in California set yet another record. The article titled, “California foreclosures jump to 20-year high,” leaves not a whole lot of room for interpretation. Here is a snippet from the article, “Foreclosures in California in the second quarter totaled 63,061, marking their highest level since the real estate information service began tracking them in 1998.”

Another article from the Los Angeles Times offered a similar synopsis with an article woefully titled, “Record home losses in California.” The article written by Peter Hong continues by stating foreclosures have been the highest since the data provider began reporting foreclosure figures, specifically, that the reporting agency “began tracking foreclosure data in 1992.”

One article states the foreclosure reporting agency began tracking in 1998 while the other states they have been tracking since 1992. Considering this, foreclosures could have then reached a record since 1992 or since 1998. Either way, while foreclosures may have peeked since 1998 (or 1992), the media fails to report that the actual record was conveniently before both those dates during the savings-and-loan crisis of the late eighties and early nineties. Finding an article that mentions this is not the worst foreclosure crisis the country has seen is like finding a needle in a haystack.