Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
This is indeed a small part of the overall reason homes are entering the foreclosure process, right now. I'm curious, to what or whom would you attribute the large part?
I'm sure you're fishing for a certain answer and I won't even pretend to know it so why don't you just tell me what you think the answer is.
Quote:
Originally Posted by Ceece
I don't know how "small" a part this is. It's the folks who bought recently who don't have equity ($0 money down, second mortgage, adjustible rate) that have the most problems now. Those types of loans weren't generally available in the past and should never HAVE been available in the present.
This is basically what the report was about - I forgot to look for it - I have to try and remember which channel it was on. Who's to blame; the buyer for buying more than they could afford - the banks for granting loans that they knew people were likely to default on - the government for allowing banks to grant such loans, etc - the list went on and on.
Ok I'm really going to look for the link this time
I don't know how "small" a part this is. It's the folks who bought recently who don't have equity ($0 money down, second mortgage, adjustible rate) that have the most problems now. Those types of loans weren't generally available in the past and should never HAVE been available in the present.
Consider it from the perspective of no one buys a home until a lender via. underwriter approves. A lender and loan officer are two different things - one is a giant pool of money.
The largest problems aren't borne by those who bought recently, but by those who have lost jobs and/or cannot conform to Banking industry standards which refuse to adjust the terms of their loans.
I'd argue those who remain to pay the tax bills of those who have lost their homes and jobs, are also under great amounts of pressure.
Many of "those" loans were available - the risk was different and the vehicle to package, leverage and make money didn't exist. You can still get a 100% loan, you can still get an ARM, one can still buy a home with 3.5% down and hey...the Govt. may send you a check for $8000 if you meet all of the requirements
Consider it from the perspective of no one buys a home until a lender via. underwriter approves. A lender and loan officer are two different things - one is a giant pool of money.
The largest problems aren't borne by those who bought recently, but by those who have lost jobs and/or cannot conform to Banking industry standards which refuse to adjust the terms of their loans.
I'd argue those who remain to pay the tax bills of those who have lost their homes and jobs, are also under great amounts of pressure.
Many of "those" loans were available - the risk was different and the vehicle to package, leverage and make money didn't exist. You can still get a 100% loan, you can still get an ARM, one can still buy a home with 3.5% down and hey...the Govt. may send you a check for $8000 if you meet all of the requirements
Once these 3% and 8,000 cash back programs end, housing prices will continue to fall. As rates rise, they will continue to fall. As I said to others before 2008, people will be absolutely amazed how little they'll have to pay for a house. The real pain hasn't even begun yet.
Once these 3% and 8,000 cash back programs end, housing prices will continue to fall. As rates rise, they will continue to fall. As I said to others before 2008, people will be absolutely amazed how little they'll have to pay for a house. The real pain hasn't even begun yet.
What 3% cash back program? Home prices have begun to increase as inventory is depleted. The remaining pressure is in forecloses, the pressure small banks are under and the valuation of level three assets. Three weeks ago the first bids were submitted for the initial PPIP.
What 3% cash back program? Home prices have begun to increase as inventory is depleted. The remaining pressure is in forecloses, the pressure small banks are under and the valuation of level three assets. Three weeks ago the first bids were submitted for the initial PPIP.
Home prices will go down or remain stagnant, don't kid yourself. The Japanese bubble is a prime example.
The $8,000 credit was a major cause for a spike, but without it house prices would drop.
And as you may know the banks are still holding on to a bunch of foreclosures.
People are still (even though the number is shrinking) are getting laid off.
20% down should be mandatory, and if that's the case prices will adjust even further because not that many people have 100,000 to put down on a $500,000 house. At least in California.
Foreclosure filings -- including mortgage default notices, house auctions and home repossessions by banks -- were reported on 343,638 properties in September, down 4 percent from August, but up 29 percent from the year-earlier month, real estate data firm RealtyTrac said.
Considering there were a lot of layoffs after Sept 2008, and properties continued to drop substantially in value, that combination has caused many homeowners to "walk away" from their mortgages (why pay if your home is only worth 50% of your mortgage), or be unable to meet the monthly payment (laid off).
So of course, we will have significantly higher foreclosures this year versus last year.
But the good thing is the number of foreclosure filings has gone down 4% from the previous month based on my above link.
Let's see.... so far Mr President has... bought a dog..... went to Denmark.....bought GM.....
He's done absolutely nothing for our economy, and is not even trying. The only thing he cares about is that damn health care plan, which probably won't pass anyway.
If I had wasted an entire year at my own job like our president did I'd be looking for a job come review time.
I am sorry while that may have been true for a number of foreclosures it can no longer be that it is people who bought more house than they could pay for....
Yeah and where did most of those loans come from, and why we now all know the answers to that question. Who made out the loans to begin with.
To add,the plans put in place did not seem geared towards helping people that much with all the rules and restrictions in place...we tried for months to take advantage of this but in the end it could not help us.
Foreclosures are going to get worse,especially when commercial real estate tanks.
You hit the nail on the head. Why do they think we are in this trouble to begin with.
Once these 3% and 8,000 cash back programs end, housing prices will continue to fall. As rates rise, they will continue to fall. As I said to others before 2008, people will be absolutely amazed how little they'll have to pay for a house. The real pain hasn't even begun yet.
They refuse to think that way..times will return to 2005/2006 is what they think and what the talking heads seem to imply..recovery ?
Recovery to what I ask ?
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
