Bankruptcies and foreclosures on homes are on the rise - 200% higher over last year. Some are due to people falling on hard times, but the majority are due to over spending.
This affects all of us.
Juni
BANKRUPTCIES AND FORECLOSURES IN THE US
by juni 18 Replies latest jw friends
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Elsewhere
I suspect the majority of them are being caused by so many people buying houses using some of the "creative" mortgage plans proposed by the mortgage companies.
5 Year ARMs, 80/20 Loans, etc...
There is also the fact the many people continued to purchase over priced houses as investments on the assumption that real estate could only increase in value.
As the saying goes... The Chickens are coming home to roost.
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jayhawk1
Gotta love those Bush Admin. economics. Let our kids pay for it.
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BCZAR2ME
"Critical times hard to deal with"
bczar
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YoursChelbie
One thing is for sure, the people who accept offers of 100% financing with no money down are at a disadavantage if they need to sell right away. They will have little to zero equity after they pay the real estate agent's commission. So, if location is somewhat of an option, a working person's home should NOT be located in areas like certain parts of California, Florida etc., where prices can be twice or three times as much as comparable houses elsewhere like in parts of Texas.
YC
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looking_glass
There was a lawsuit filed in AZ years ago, a guy sued his mortgage lender claiming that they told him he could afford a house he clearly could not afford. What is funny is that when you looked at this financials, it was not that he could not afford the house ... he had been working making 250k a year. His wife was making 75k a year. They had a mortgage for a house that was I think 550 or 600, 30 year. But they each had a new car. Their kids (2) each went to private school. He had a boat. Well he lost his job. So they were having to survive on her salary alone and they had already max out their credit cards prior to him even losing his job.
I don't blame Bush for this mess, I blame every idiot that thinks that they are entitled to everything in the world.
Oh, P.S. - the guy lost the lawsuit.
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juni
looking-glass said:
don't blame Bush for this mess, I blame every idiot that thinks that they are entitled to everything in the world
I agree with you. It's a matter of irresponsible spending. Like I had said, there are those that fall on hard times i.e. medical issues, but the vast majority is due to personal greed wanting the latest and newest.
No matter how much money you earn, if you aren't financially responsible you'll find yourself in deep trouble also.
Juni
You're right Elsewhere. Again though, a service provided legally to those who can't afford what they WANT. There are also INTEREST ONLY home loans. And you cited the ARMS. A huge reason for these bankruptcies are due to people re-financing their homes to get money out to pay off maxed out credit cards. And then instead of learning from their mistake, they keep on spending and go for a re-finance loan 2 years down the road to pay off more accrued debt. The value of homes has decreased horribly in different parts of the US so if they wanted to sell they could not pay off their mortgage.
This problem has little to do w/what party is in office.
Juni
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MinisterAmos
Don't even THINK about going there.
Anyone want to guess what was involved in over 70% of bankrupcies over the last 10 years?
ILLNESS AND MEDICAL EXPENSES!
Worker gets sick and THEN begins to rack up CC debt from uninsured medical procedures is the usual progression. If you think your Attorney is expensive, then I urge you to investigate what a few days stay in a hospital can cost. Don't forget your Dr., his buddy, his neighbor, his partner, his golf partner and the hospital Dr (your Dr was "unavailable" to check on you) all sending seperate bills. The hospital won't admit the patient without promise of payment, and many fork over their CC at admission.
So no it's not people who are buying plasma TVs as the CC companies wanted Congress to believe and Bush bought into when they changed the bankrupcy laws earlier this year. This will be the real legacy Bush leaves behind. It will affect people even more adversely than the $600 Billion or so price tag for Iraq.
If you think it's bad now, then just wait until the real housing price adjustment hits. One of my neighbors who just bought for $800K figures he would have to pay over $200K including commission to SELL his house right now considering the glutted market and falling prices....
No I don't live in TX.
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Mr. Kim
Been saying for years, many things in the world is far over priced! The main one is real estate. Hopefully everything will go belly up and we have the greatest depression the world has ever known. ...........then maybe, many of us will pull together and help each other out!
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juni
I appreciate you voicing your opinion MinisterAmos. I'm 57 and you're 55? We've seen a lot growing up haven't we? I remember a time here in Wisconsin when $25,000 would buy you a nice, new 3 bedroom 1 and 1/2 bath ranch. And I do agree w/you. Something HAS to be done w/our health care system.
Juni