Foreclosure Crisis? Myth or Fact?

Is there really a foreclosure crisis, or something manufactured by the news media outlets? If you look at the superficial numbers, yes, foreclosures are up on average 78.23% nationwide. However the number of foreclosures are actually less than 1% of the homes out there. This is because the foreclosure rate has always been very low, and really except for a few markets, see below chart, nothing much is happening. The medial outlets make it look like most of the country will end up on the street. I think they need some regulation. There has to be something we can put on them for upsetting the economy.

In fact, most people that are in trouble to to resetting loans, ie option arms, are working with their lenders to re negotiate the loans so it is a win win for eveybody!