In the most recent Mortgage Bankers Report, it was stated that foreclosures have doubled since this time last year. California and Florida who experienced the most drastic rates of real estate appreciation lead the way in these latest staggering numbers. The report also noted that approximately 5.5% of borrowers are more than 30 days late, and 1.25% of borrowers are 90 days or more late.

In light of all of the recent turmoil in the subprime mortgage meltdown, all indicators are pointing towards a worsening real estate market in the coming year. No bottom to this decline has been seen yet, and many economists don’t foresee any reprieve until Q4 of 2008.

In Bush’s statement regarding foreclosure assistance he urged people to call the Homeowner Preservation Foundation at 1-888-995 HOPE. In his address he mentioned that there are approximately 1.2 million families that are eligible for assistance under his new mortage reform/assistance program. The president outlined 3 majors ways for mortage assistance: Easy refinancing into a lower fixed rate mortgage, Transferring into a FHA secure loan, or Freezing interest rates on adjustable loans for 5 years.

His plan has come under much scrutiny from economist who feel that government intervention in the housing cycle would only delay or prolong foreclosures numbers in an already declining market. Although there is no government money involved in this program, it is still government legislation wrapped around a private sector effort. Last time the government intervened with housing and foreclosures was in the late 1920’s. Hmm……Are we following in the footsteps of Japan’s last real estate cycle or worse?