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As far as clients I've done business with or my husband's clients - I would say 5. Of the 5, only 1 tried to keep the home; the other 4 milked it to the max.
However, I know of one guy who lives about 3 hours from me that has not paid for over 3 years and now Chase may give him 30K. So wrong IMO.
11 people in Michigan. Some family, some friends. 1 person actually dumped their house and bought a second before the first got foreclosed on. It was a planned default. She was upset her house lost value. It had nothing to do with not being able to pay the mortgage. She and her husband have good jobs. She was just peeved that for what she was paying she could purchase a home twice the size. The rest were due to job loses and it took a while, approx. 3-4 yrs. for each.
People choosing ARM's at a time when 30year fixed mortgages were 5% or less......sigh.
And all this after the real estate collapse in California during the 90's, the dotcom bubble, daytrading fad and so forth.
ARMs are not evil -- if you think you're only going to stay in a home for five years, why not get a super cheap ARM, and bank the difference to prep for the move?
We have been foreclosed on, but we were able to re-finance our home at a far lower payment - less than 50% of the original. Actually, my family's house would have been paid off about a year before they sent a foreclosure notice, but my late dad took out a home equity loan in 2004 and again in 2005, largely to shore up our debt-ridden family business (which closed in 2011, with the commercial property being foreclosed on, but not solely because of that). We are now in danger of losing it again, largely because of the closure of the business, which put us all out of work, and the theft of some property that could have been sold to make payments. Currently, we owe $205,000 on a house that was originally purchased for $86,000 in 1993. I don't know anybody who has had their home foreclosed on them, but I have noticed many home foreclosures, many of which proceeded to eviction and had the copper wiring stolen out of them. Minnesota has certainly not been hit as hard in that department as Nevada or California, though.
Conversely, I wonder how many new homes constructed (and plots of land developed) during the 2005 - 2006 real estate bubble went unsold. In 2005 and 2006 especially, there was a construction boom around here. New homes, primarily suburban townhouses, seemed to be going up like never before, and previously unserviced land (which is in abundance in this area) was bought, subdivided, and re-sold to individuals who wanted to build a house on it. There were several developments of this type that popped up, one very large. With the real estate crash in 2007-2008, and the poor economy of 2008 onwards, it seems that few have rushed to buy the new homes and plots, and much of it remains for sale. I can think of a few eerily vacant subdivisions off the top of my head right now. One example of this is Google Maps . It's probably a delight for the children of the owners who did buy, however, since they have a lot more land to play on than they otherwise would.
While driving to work today, I began to think about all the people I know who have lost there homes since 2008. For me, in So. Cal. the number is 7.
I thought it would be interesting to see how other parts of the country are faring. How many people do you know, and what part of the country are you in.
South Carolina.
Two experiences while I was looking for a house.
1. Foreclosure auctions in our County are the first week of each month. Our County website lets you see the homes. I found a nice brick home and was very interested. It was not vacant though. The occupant had inherited the house. The house was on the foreclosure auction docket. With only a few days before the auction, it got pulled. It turned out the occupant had written the judge a letter to explain how they could afford the mortgage. This was a small house and the mortgage was under $250 per month. Can't afford it?
Low and behold, the next month the house is listed again. Again it was pulled, in the last 3 days before the auction.
It never appeared on the auction block again, so the occupant made arrangements with the bank, while having ignored the mortgage for many, many months. So, this is an example of how people can be foreclosed on, and use the system to delay things close to a year.
2. Another house I saw was vacant. It has been vacant over two years.
I found out which bank was involved. A well known name, Bank of America. The guy at their mortgage office told me the foreclosure process, in some cases can take years, for various reasons. In this case the occupants left as soon as the paper work arrived in the mail. They left clothes, toys, etc. behind. This is a case where, just receiving the foreclosure paper work in the mail, scared the occupants into abandoning the home, in a hurry.
If you know the system, you can hang around for a long time.
Maybe keep the house, and maybe end up being offered "cash for keys," if you leave the home in good shape.
Our monthly foreclosure auctions were averaging over 110 back in late 2009-early 2010. Then the foreclousre market dried up somewhat, as banks were more willing to work with people. The number of auctions dropped to under 40. Now they are increasing again.
But, some news this week that O'bama wants to let private investors buy up, as many Fanny and Freddie houses as they want, and turn them into low cost rentals, to help boost the economy and get rid of all the bank owned homes.
None. My generation has never had enough money to own. However, my previous landlord lost about $250K of his own money short selling the house I was renting.
Just one couple I know lost their home, but it was a long slow slide before it happened and was because of some bad luck and poor choices they made along the way. Things that seemed reasonable at the time ended up working against them in the end.
Hello Everyone. My husband passed away in 2009 and left me in a nightmare position money wise. I recently found out I own the land. however I'm going into foreclosure as we speak. my question is should I take a loan out on the land to pay debt. what is the process of taking out a loan on land? I live in Texas. I'm also looking for a new start out of Texas. I'm looking toward Evanston, IL or Valparaiso, IN for college. Please help me. I hate owing a debt to anyone. I have work all my life and for the first time in my life I don't know what to do. I did co-signed on both the land and house.
I would talk to the local Farm Credit Services in your area. They do a lot of business with farmers for crops, land, and equipment. You don't have to be a farmer to use their services. Most all banks require 15-20% down for land loans, so if you can't come up with the cash, you probably won't be able to get a loan. However, if you do have the cash, FCS won't require much more than that.
The only folks I know that are losing their home in a short-sale/foreclosure made poor financial decisions, such as racking up credit card debit and refinancing with cash-out at the highest amount the bank would allow before the market collapsed.
I blame both the American people and the banks for this disaster. Nobody held a gun to people's heads and told them to refinance with cash-out. People wanted things with money they didn't have and the banks were writing loans accordingly. The people I truly feel for are the ones who bought homes in 2005-2007 and are now underwater at no fault of their own.
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