About a week ago, I was driving through the area, and, for the first time ever, I saw three houses, repossessed by the bank, on the same street. I can only ever remember seeing a few houses repossessed by a bank during the last decade. Now, all of a sudden, there were three, on one street only!
That same afternoon, I met some new neighbors, who had just bought another house in the same area, also a house that had been repossessed by the bank.
Then this week, the statistics on final notices and repossessed homes for the province of Quebec came out, and guess what: The number of homeowners (mortgage borrowers) who received a final notice (sent after they have been in delinquency on their mortgages for a period of time) jumped by 18% year over year during the month of May 2016 (“TVA Nouvelles”, June 2, 2016).
What is even more troubling is that this is not an isolated event, but a part of a trend that, unfortunately, seems to be growing. A similar increase was noticed during the month of April as well, and last February the rate of final notices issued jumped by 11%, compared to February 2015.
During the same month, May 2016, the rate of repossessed homes jumped by 21%. Then last February, for example, the rate of repossessions had skyrocketed by 47.8% year over year (according to “Journal de Montreal”)! In January of this year, the rate was 28% higher than in January 2015.
How many of you had actually heard or read about this ominous trend recently in the mainstream news? Let me guess… Most of us, especially those who have no time to make research on that topic, probably would never even know about this!
One of the things I mention in my book is looking for what I call “symptoms” all around you. Have you seen repossessed houses in your area? Do you know people who have lost their jobs? Did you notice an increase in food prices in your area? Shrinking products maybe? These are the things we should be paying attention to. Those are the real indicators showing the true state of the economy.