I do not know if there are going to be a million foreclosures or not, but the statistics that we see in mid –August indicate that about 300,000 people have already lost their homes this year.

If things keep up at that pace, we&39;re on track for about 500,000 people losing their homes this year. Could it double?  I&39;d like to think not, but, depending on whom you believe, it sure could happen! The question is how many of the tsunami of loans that are resetting between now and the end of 2008 will result in foreclosure.

We also now know that the home sales in the last few years have been artificially inflated as the real estate industry took a bunch of unqualified people off the streets and used sub-primes loans to stuff them into homes. I think that we were also borrowing from the future, taking the 2007 buyers and selling them homes in 2005. The 2008 buyers bought in 2006. Who buys in 2008?

We know that sub-prime is dead so buyers are going to need to be A-paper qualified buyers.  Based on what I see, I just don&39;t see where we are going to find 1,000,000 of them to buy those foreclosed homes in 2008. They sure don&39;t seem to be showing up looking for Pre-Approval letters from the mortgage lenders.

I always like to look for the silver-lining and I think that a good bit of the slack is going to be taken up by people who decide to buy a home for investment purposes. I think that rental units bought now will look like great buys in a few years. If you are financially confortable in your home, give that investment thought some serious consideration.