Total Bankruptcy

Bloomberg reports that foreclosures increased 57% and bank repossessions almost doubled in March when compared with a year earlier. Figures from RealtyTrac, Inc. estimate that one in every 538 homes in the United States is in foreclosure, with Nevada, California and Florida feeling the brunt of the foreclosure action.

Experts are estimating that $460 billion worth of subprime mortgages will reset in 2008, and that foreclosure rates will continue to increase throughout the year. This will mean even more houses in an already saturated market, which will likely translate to continued decreases in home prices. Some experts are even predicting a recession lasting twice as long (20 months) as is considered normal.