It’s still getting worse, and the commercial real estate crash is still on the way.

You will notice dips in foreclosures (purple) and REOS (yellow), but delenquencies have continued to increase unabated:

90 day delinquency rate: “everything 3 months late or more. Likely includes most all Foreclosures in Process. The categories are not separate.”

Foreclosure Rate is actual foreclosures in process: “Everything with NOD [Notice of Default] and Trustee’s Sale filing.”

REO Rate: “Everything foreclosed but still held by bank or servicer. This category is separate from other two.”

What we are seeing here is not a reduction in foreclosures, but delays in foreclosures, that are in response to regulatory changes at the federal and state level.

People still can’t pay their mortgages, and with half of all mortgage holders expected to be “under water” by 2011, we will be seeing more “walk-aways” and “jingle-mail”

The most effective solution is to make “Cramdown” legal again, as it was during the first 210 years so of the republic, but it won’t happen with the current crew in Washington, at both ends of Pennsylvania Avenue.