Maryland Leads Nation in Foreclosures (Baltimore, North Beach: real estate, rent, mortgage)

[justtitans]

Maryland leads nation in foreclosures | WashingtonExaminer.com

Maryland had the nation's highest foreclosure rate this spring, a new survey has found, and the flood on the market could drag down home values in the state.


Nearly 2 percent -- or 20,000 -- of Maryland's 1.1 million loans included in the survey were moved into foreclosure between April and June, according to a new survey by the Mortgage Bankers Association. The rate was nearly double the national average of about 1 percent of all home loans.

[InvaderBryce]

Seriously, if people would stop trying to keep up with the jones', we wouldn't have this problem. It makes no sense for people who have an income of $80,000/year to buy a $500,000 house and live well above their means. If materialism is that much important to you, then you have a serious problem.

Furthermore, people need to be required to take a class on home ownership before buying a home so they know what they are getting into. It seems like alot of people simply sign documents and don't really read them.

[SunnyTXsmile]

Originally Posted by InvaderBryce

Seriously, if people would stop trying to keep up with the jones', we wouldn't have this problem. It makes no sense for people who have an income of $80,000/year to buy a $500,000 house and live well above their means. If materialism is that much important to you, then you have a serious problem.

Furthermore, people need to be required to take a class on home ownership before buying a home so they know what they are getting into. It seems like alot of people simply sign documents and don't really read them.

While I mostly agree with you, keep in mind that sometimes the issue is also on the professionals' end.

When I applied for my home, I had an 820 FICO score, a decent down payment, a decent steady income, etc. in addition to being financially savvy due to my background in finance. I told the lender what I wanted to pay for a payment, yet I was pre-approved for well more than that. No harm there, I suppose, since I have the sense to not finance more than I wish to bite off. However, someone less money-minded than myself might not know that and assume that since they were approved for that much, they must be able to afford that much.

Then, to make matters worse, I felt like everyone was pushing me to bite off more house than I could chew, reminding me that I was approved for more, as if I had to spend all the money I was approved for. Luckily for me, I stick to my guns, but what if I were more of a push over?

Now, imagine the same thing happening to someone that has less financial knowledge than myself, and is more easily swayed by other people's opinions. They could easily have made the mistake of listening to all that poor advice to buy more house. And guess who benefits from that? Everyone that told you to buy that expensive house.

Yes, people should know about their finances, but the reality is, some don't (I'm working to change that, but I'm only one woman ).
Yes, people shouldn't try to keep up with the Jones', but the reality is, some do.
Yes, people shouldn't try to sell you a house or loan that is higher than you want, but the reality is when there's a commission involved, some do.

The problem is two-fold: people that aren't financially fit to be homeowners (for one of many reasons), and shady lenders/realtors/etc approving lines of credit and pushing pricey homes on buyers.

You can't force someone to educate themselves on their finances or stop them from keeping up with the Jones', but you can make more strict regulations on who gets a loan, and that's exactly what has been done (thankfully). And I agree that there should be more financial education in this country.

Now, if we could just get them to stop telling people they can afford more house than they can.

(And all of the above can be said for any form of line of credit.)

[North Beach Person]

Real estate professionals sometimes doom themselves. I don't know how many over the years have encouraged Mrs. NBP and I to sell and buy a house more befitting our supposed "status". The number used was 2 1/2 time gross yearly income. After running the numbers I couldn't see how we could afford it. Saying that then got the "stretch" lecture. We stretched when we bought this house, I don't want to do that ever again.

Did any of you see the article in the Post several months ago about the woman on assistance who somehow or other found herself "qualified" for a $500K house in Howard County? Which she bought and promptly lost. It should be required reading.

Teaching in a very middle/upper middle class school in Prince George's I've lost count of the kids who get dropped off in Benzes but don't have internet at home because it's unaffordable or who can't scrape up $25 for a field trip.

[rsh56]

Do people still buy houses in full?

[SunnyTXsmile]

Originally Posted by North Beach Person

Real estate professionals sometimes doom themselves. I don't know how many over the years have encouraged Mrs. NBP and I to sell and buy a house more befitting our supposed "status". The number used was 2 1/2 time gross yearly income. After running the numbers I couldn't see how we could afford it. Saying that then got the "stretch" lecture. We stretched when we bought this house, I don't want to do that ever again.

Did any of you see the article in the Post several months ago about the woman on assistance who somehow or other found herself "qualified" for a $500K house in Howard County? Which she bought and promptly lost. It should be required reading.

Teaching in a very middle/upper middle class school in Prince George's I've lost count of the kids who get dropped off in Benzes but don't have internet at home because it's unaffordable or who can't scrape up $25 for a field trip.

Yup. I'm willing to bet the reason they're still driving the car is because they're upside down on it and can't afford to get rid of it.

The sad truth is, in some industries (by no means, in all industries), if you drive a less desirable car, wear less desirable clothes, etc., it can hold you back in your career because there's an unspoken assumption that you're unsuccessful which means you don't know your job, just because you don't look the part. It's a Catch 22, for some (not that I ever advise living beyond your means, but I see the push to keep up with the Joneses, even if you don't care about keeping up with the Joneses).

All reasons I wish humans were less complicated and more genuine like dogs.

[North Beach Person]

There's a lot of posing, I guess is the word, in the close-in DC suburbs. That would include the farther out areas, too.

A funny/dumb example: an acquaintance of mine has a $60K or $70K BMW, don't know the model. The battery went dead a few months ago and she couldn't afford to replace it. Also owns a $750K house.


While I do feel sorry for some individuals I don't have any sympathy for the investors who are losing their properties. Don't buy 'em if the market rent won't cover the expenses.

[HandsUpThumbsDown]

Originally Posted by North Beach Person

Did any of you see the article in the Post several months ago about the woman on assistance who somehow or other found herself "qualified" for a $500K house in Howard County? Which she bought and promptly lost. It should be required reading.

.

I read that. It caused me to do more than one of these:

[KLynch10]

Originally Posted by North Beach Person

Teaching in a very middle/upper middle class school in Prince George's I've lost count of the kids who get dropped off in Benzes but don't have internet at home because it's unaffordable or who can't scrape up $25 for a field trip.

That's just sad. I think my neighborhood is the opposite (Fed Hill). I know so many people that own pretty crappy cars, but make pretty good money and own a pretty decent home. Most common reason.. who needs a car payment, it's a bad investment, a home payment is not. There are some nice cars down here, but a lot of people realize the smarter investment and people walk to everything so it's not like you're showing off your car often.

[SunnyTXsmile]

Originally Posted by KLynch10

That's just sad. I think my neighborhood is the opposite (Fed Hill). I know so many people that own pretty crappy cars, but make pretty good money and own a pretty decent home. Most common reason.. who needs a car payment, it's a bad investment, a home payment is not. There are some nice cars down here, but a lot of people realize the smarter investment and people walk to everything so it's not like you're showing off your car often.

I wasn't going to say it, but since it's been brought up...

I hate to stereotype or paint an area with a large brush (which is not what I'm doing here, as I'm not saying the entire area is like this but), while I love both Baltimore and DC tremendously, there's sometimes a difference between the two, especially in the down-to-earth department.

Though the article didn't touch on it, I can't help but wonder how recent reduced government spending and government employee down-sizing and agency mergers has contributed to those housing numbers around DC, as well.

Also, keep in mind that Maryland has been one of the least affected states during the recession, so a small bump in the road doesn't worry me much.