Maine Foreclosure rates (foreclosures, refinance, credit rating)

[moughie]

Foreclosure filings 2008 Qt 1
Maine in 41st place
587 All filings
1,177 1 per X households
243%* Change from qtr 4
2074%* Change from qtr 1 2007

New Hampshire was even worse! Vt had the lowest ( maybe something off there- only 3 filings)

Still Maine was ranked 41, while Vt ranked 50; both rankings due to the relatively low number of foreclosures compared with higher density states. Perhaps Maine's high numbers are fueled by outrageous second home McMansion foreclosures along the coast??

Here is the link from today's USA Today:

State by state foreclosure filings, Q1 2008 - USATODAY.com

[Mainer61]

I think it's more due to everyday people with sub-prime loans, overextended, or lost a job. Typically the wealthy homeowners on the coast wouldn't have this problem. It's very sad whatever the case

[Northern Maine Land Man]

The second quarter will be much worse. May is the month when the greatest number of sub prime loans with 5 year rests will occur.

"Gee, Mr. Jones; The house we loaned you $125,000 on in 2003 is only worth $83,000 now. Your credit rating isn't as good as it used to be. We can refinance you at 9 1/4%, but you will have to bring a check for $29,850 to closing."

That's the line many homeowners are going to hear next month. That's what happens when a homeowner borrows $125,000 on a $100,000 house and spends the extra money on a used boat, two snowmobiles and an ATV. It happens all the time.

[Maineah]

Originally Posted by Northern Maine Land Man

The second quarter will be much worse. May is the month when the greatest number of sub prime loans with 5 year rests will occur.

"Gee, Mr. Jones; The house we loaned you $125,000 on in 2003 is only worth $83,000 now. Your credit rating isn't as good as it used to be. We can refinance you at 9 1/4%, but you will have to bring a check for $29,850 to closing."

That's the line many homeowners are going to hear next month. That's what happens when a homeowner borrows $125,000 on a $100,000 house and spends the extra money on a used boat, two snowmobiles and an ATV. It happens all the time.

Because the banks willingly lend them money they don't need or have the real ability to repay. We bought a truck once with home equity. It took me nine years to pay it back. Sure the interest was real low(for back then) but paying for a truck for nine years was not a good idea. I worked a seasonal job and could pay interest only in the winter when things were slow which helped us a lot with two small kids to feed. Equity loans can be a life saver or disaster if they get ahead of you!