People sometimes have a tendency of getting in over their heads, but the local foreclosure rate must have other causes as well.
There are between 150-200 cases per month of people who can no longer pay their
mortgage
These homes end up at auction. And, of course, somebody will be there to help themselves.
also a lot of people that are in real estate and they attend these auctions to
buy the properties being sold
Keyrose thanks his lucky stars.
7 comments:
With a meltdown like this, we should all thank our lucky stars - even if we've paid our bills on time our employers for the most part could have laid anyone off.
But, when it comes to these foreclosures, remember, a large % of these are due to borrowers who got into homes they shouldn't have bought due to bad credit issues, but they were under an Adjustable Rate Mortgage and were told "Don't worry, just refinance before the rate adjusts and you won't get stuck with a payment double what you were paying" except when it came time to refinance they couldn't because values dropped and lending tightended up.
A lot of people were sold homes they couldn't possibly afford by unscrupulous companies that turned around & sold the mortgages to places like Countrywide & Bank of America.
Yes, blame starts with the home buyer and goes all the way up to the Wall Street greedy guys who designed these bundled mortgage-backed securites, and to those in Washington (of both parties) that let this happen, and, like DG said, the unscrupulous mortgage generators.
Instead of telling buyers that are trying to buy a home they can't afford (at the risk the buyer goes to the mortgage company down the street), they went and fudged numbers etc. to get the deal done.
what meltdown???, what real estate crisis? what
foreclosure crisis?? ACCORDING TO THE WEBB
COUNTY TAX APPRAISAL OFFICE,,, real estate values
in Laredo are going up up up with no end in sight.
what does that tell you about the truthful value
of a TAX appraisal???
as worthless as the corrupt elected officials they
serve.
Well stated Flop and Anon.
Blame gets taken off the homebuyer when the finance guys okay the mortgage (or change the numbers around so it gets accepted) they knew shouldn't be accepted. There's a reason why some banks weren't in financial trouble (Frost) & others needed bailing out (BoA, Citi, Wells Fargo)
How can blame be taken off the buyer just because the mortgage is approved?
They tell the buyer: Your payment is X, but in 2 years it will be X times 2, but don't worry, you can refinance before that.
That alone should tell a buyer that they are in a loan they shouldn't be. Yes, the mortgage company has a bigger obligation to be honest because they are professionals and should know better, but the homeowner is never completely blameless.
If they were, we would see lawsuits by the homeowners up the gazoo, but there are very few (only in outright fraud, faked signatures, etc.).
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