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Old 04-12-2007, 04:25 PM
 
Location: ga
985 posts, read 4,168,040 times
Reputation: 467

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http://www.usatoday.com/money/econom...ver-usat_N.htm
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Old 04-12-2007, 06:34 PM
 
79 posts, read 298,177 times
Reputation: 37
Default Very scary

Oh, this article makes me so sad. And that's the thing -- even if you do all the right things -- buy a house you can really afford (instead of what a mortgage company tells you you can afford) -- you can still get totally screwed if your neighbors can't afford their own homes.

There is a high end subdivision in an excellent school district that I looked at -- but didn't seriously consider because there were two foreclosures in it. Unless you have access to neighbors' bank statements, no subdivision is immune.
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Old 04-12-2007, 09:48 PM
 
254 posts, read 755,524 times
Reputation: 75
it's a big thing in Charlotte too
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Old 04-13-2007, 06:05 PM
 
502 posts, read 1,507,706 times
Reputation: 192
Thank you for posting. Very informative article.
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Old 04-15-2007, 10:33 AM
 
Location: NE Georgia
2,788 posts, read 6,952,469 times
Reputation: 1400
Quote:
Originally Posted by Philagirl View Post
Oh, this article makes me so sad. And that's the thing -- even if you do all the right things -- buy a house you can really afford (instead of what a mortgage company tells you you can afford) -- you can still get totally screwed if your neighbors can't afford their own homes.

There is a high end subdivision in an excellent school district that I looked at -- but didn't seriously consider because there were two foreclosures in it. Unless you have access to neighbors' bank statements, no subdivision is immune.

It may be safe to say that hardly any subdivision in Atlanta does not have at least one foreclosure.
With the advent of sub-prime lending, creative financing, and uneducated consumers mostly coming from large Northern cities, which they have rented most of their life, and the worst..and... The speculator, these are the drones who come in and buy 3-4 homes in a nice subdivision thinking they are the next Donald Trump and Charlton Sheets, who are going to have a rental property million dollar dream. Areas will continue to have these issues.

Lets review:

Sub Prime - Self explainatory. Bad Credit, high rate, future foreclosure

Creative - The young YUPPIE who must have the largest, most fancy home in the area. Though college educated, they missed common sense 101, thus funding the large home on a 40 year amort, tiered or adjustable rate, interest only program only to realize that treasury rates increase, thus pickle time!

Northern NY Rentor now homeowner -
From years in Brooklyn on rent control, the buyer has had dollars saved and has fallen in model love at the new development. Instead of getting the 4 br/ 2ba home they need the 5 br and 4 bath model with 20 foot ceilings, walkout basement, and the works. Utopia in the making. They budget by paying out their saved money to get the standard loan just under the debt ratio/income level. Move in and all happy. Oh No! forgot something. They need to furnish, curtains (which can be more costly than the furniture) insurance, and all utilities. There are property taxes, and the dreded home owners association dues, yard maintainance, etc. Hey! nobody said nothing about the ad valorem on our 2 cars due at one time!!!

Dreded speculator-
I must control myself here. These are the worst of the worst. Come into a new development like thieves in the night. Buy up 1,2,3,plus homes with interest only loans only to rent them out. Come to find out there is a home glut in the area and renters are hard to find. With payments eating them alive and the bank looking for their leased Porsche that is two payments in arrears they will rent to anyone with cash. Of couse being nice homes in new developments they need 1,500-2,500 per month to cover some of the costs. Next thing you know you have either a group of folks or your friendly drug cartel. Then come the association violations, issues, home destruction, and neighborhood devaluation.

When it comes to home buyers, folks must educated themselves and not be afraid to ask for assistance. The home buying business is no different than the car business, just the stakes are much higher and the consequences much worse.
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Old 05-22-2007, 06:50 PM
 
9 posts, read 22,408 times
Reputation: 11
did anyone catch the story on ga foreclosures on CNN last week. what is the outlook. we are looking to relocate to forsyth county. We are looking at home in the 350 K range.
My realtor there said it mostly affects those in the higher and lower prices ranges. I realize no one is immune, but my guess is that first time home buyers and those buying up may have gotten the worst of it.

any insight would be appreciated.
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