156,483 families have lost their homes to foreclosure this year. Foreclosure filings are up 112% during the first 3 months of 2008. Things are looking worse and worse in this real estate market. With all the homes that are in foreclosure, how is anyone that is not in foreclosure able to sell their home? All the purchase contracts that I see are from banks on foreclosed homes or short sales homes.

Real estate information firm RealtyTrac reported that nearly 650,000 foreclosure filings - which include notices of default, auction sales and bank repossessions - were issued in the first quarter. That represents 1 of every 194 households and marks a 23% increase from the last quarter of 2007. Ouch! It's getting worse and worse.

The states that have been hit the hardest should come as no surprise. Nevada, California and Arizona. Part of the reason for this is because alot of investors picked up properties and have let them go because they now owe more than they are worth. In the first quarter, 1 of every 54 homes in Nevada received some type of foreclosure filing - more than any other state. Its largest city, Las Vegas, had 1 out of every 44 homes go into foreclosure.  There were only two metro areas in the ranks of the 20 hardest hit that were outside the Sunbelt - Detroit, which ranked sixth in the nation with 1 in every 68 households in default, and Cleveland which saw 1 in every 105 homes go into foreclosure.

To make matters even worse, 2008 has a record number of adjustable rate mortgages set to adjust, $362 billion.  Property values keep declining so that homeowners cannot get their homes refinanced and banks don't like to lend on foreclosed homes.