60% of Homeowners of 6 States are Facing Foreclosure »
Posted By altnrg 7 months, 2 weeks ago in News
About 60 percent of homeowners in Arizona, California, Florida, Georgia, Michigan and Nevada are facing the possibility that their properties will be foreclosed.
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GehlLady7 months, 2 weeks ago
Yes, it is. If the right things are done now, I think we'll be stronger later though.
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nostalgia7 months, 2 weeks ago
"An estimated 60 percent of homeowners in Arizona, California, Florida, Georgia, Michigan and Nevada owe mortgages to banks more than the market value of their properties."
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That's what happens when prices escalate as quickly as they did in some areas
The housing bubble needs to be deflated otherwise many people won't be able to afford homes without creative financing
FTA: "builders continue to put up new homes while buyers give only small, and sometimes, no down payment"
This must change. With little or no money down, "buyers" are more like renters and it is very easy to walk away from the house they bought - they have nothing invested.
The Jumbos are due to reset in 2009 and 2010. It is only going to get worse before it gets better
"prospective borrowers are having difficulty with increasing mortgage rates. A fixed-rate mortgage of 30 years has an averaged of 6.46 percent"
6.46% is nothing compared to rates we have seen in the past
There was a time when people would have jumped at a mortgage rate of 6.46% -
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Natureboy7 months, 2 weeks ago
The headline is somewhat misleading on this one.
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The 60 percent refers to people who are "upside down" in their mortgages, owing more than the house is currrently worth. They are not necessarily "in danger of foreclosure" unless they have problems making payments.
Knowing that this is a phenomenon of the market, and will likely right itself in a few years, they would be wise to hang on and do what they have to do to make payments.
I lived in Phoenix for a little over a decade, and sold the home we moved into for more than twice what we paid for it. Part of that was cashing in on the housing bubble before it popped, but a LOT of it was simply sweat equity - putting in tile floors, better fixtures, remodeling, painting, landscaping.
So one cure for an upside-down mortgage might be an aggressive plan for home improvements.-
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altnrg7 months, 2 weeks ago
You have a point regarding the title, perhaps I should have added "at risk" before "facing foreclosure" because when people are in state of upside-down mortgage the option of selling and cover their mortgage is "taken" from them.
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ningyo7 months, 2 weeks ago
when obama gets into office they will change this headline to "obama fiscal plan has 96% of homeowners keeping up with mortgage payments in homes with no equity"..even tho he will have done nothing
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mamasan7 months, 2 weeks ago
you are so right! but I think it will actually take about 10 years for this to get better. If only we had never voted for Bush! This crap woulda never happened.
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trevelmike7 months, 2 weeks ago
sigh, unless something drastic is done i see no end to this crisis. It seems to me we have not learned anything from the great depression cause thats where i think we are headed. Something that we as humanity do doesn't work anymore whether its capitalism or greed we are led to this point once again and you can be sure it will lead to a world war, one that the world has never seen before.
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emildwg7 months, 2 weeks ago
If anyone thinks they are going into foreclosure. email me we have
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program to help you... no loan mod, no short sale, just a FHLA.(fair housing lending Act)... -
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Newperson7 months, 2 weeks ago
Good story is a shame times are bad we got to hang on beter times ahead
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klemmex7 months, 2 weeks ago
This headline is ridiculous...its easy to try to get a large readership with alarmist headlines, but it doesn't really help anyone but the author.
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For those who are upside-down in their property value, just hang in there and make your payments. If you have to, rent out the garage as a spare room or take in some roommates. Values will come back in a few years, it just takes time. -
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suzanek7 months, 2 weeks ago
Thats really bad news, and the worst is yet to come. God bless everyone.
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jiants19867 months, 2 weeks ago
Are we supposed to feel sorry for these people. As Forrest Gump said "Stupid is as stupid does." Home prices in those areas were going up an average of 20% or more a year from 2003-2006. If anybody thought that kind of growth would just continue year after year then they were crazy. That would mean a a $250,000 would become a $1,000,000 in just 8 years. Buying a house not on it's present affordability but based on that kind of appreciation is just stupid. Yeah, some people were screwed by mortgage lenders and builders, but the majority screwed themselves and now want to be bailed out for making a stupid decision and buying something they couldn't afford. The only folks I feel sorry for are those that bought houses at artificially inflated prices and could afford them. Now they have negative equity and it will take years for them to get any equity back. Once again it is the people who do the right thing that always seem to pay for those that don't.
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sonofreason7 months, 2 weeks ago
There are plenty of people who bought a house before the inflation, such as myself, who are now being dragged down with the wreckage. I owned a small construction business in Phoenix that simply has no work available anymore. I don't think I bought too much of a house, 3br, 2ba, for a family of 4, but at this point it wouldn't matter. This thing is a house of cards, and when the bubble popped plenty of well meaning home owners watched their income fall dramatically, or lost jobs based on what the market had done. I have lived my life to be conservative financially, I still don't think I did the wrong thing. But that's not going to stop this happening -- to lots of people.
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Congratulations that you've done everything right in your life. For that I guess you get a big pile of stones to chuck at the people that didn't.
Don't feel sorry for me dude, I'm not asking you to. I won't feel sorry for you either when your day comes.
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fastestnascar7 months, 2 weeks ago
The economy, lost jobs, etc. etc. are lost for good due to these factors:
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1. Board members and CEO's of American company's of which you used to work for promised great deals they delivered to the Asian markets... costing you your job!
2. Board members selling your company's jobs to the lowest bidder "Asian Markets" with no one brave enough to stand up and say otherwise to stop them.
3. Bush economics leading the way!
Need I say more? -
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Spadecaller7 months, 2 weeks ago
What we have today is the inevitable conclusion after 8 years of Bush and Cheney raping our nations resources; and unfortunately, we have not even seen the full damage yet.
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reeves5147 months, 2 weeks ago
This is a highly misleading skit just to get scare tactic attention.
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trussi8217 months, 2 weeks ago
How Ironic Is This. I am having difficulty keeping my home and making my payments. I am self employed and like the rest of America - business is down and we are struggling!
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I have been in touch with my mortgage company (Aurora Loan Services)-(owned by Lehman Brothers) and have asked for a reduction in interest rate. I have worked out a forebearence agreement where I have a lump sum to come up with and then have to make 3 regular payments - at my current rate. While this is going on, I can apply to have my interest rate reduced (loan modification however no guarantee). I can make the payments with some help here and not go into foreclosure but getting them to simply do this for me is like pulling teeth. I would think given the choice - something rather than nothing is an easy solution but I fear instead they'll take the house instead of working with me on this. No wonder they need a bail out cause no one there is using their head of making a smart business decision out of the gate! BTW - I am one of those in FLA.-
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sonofreason7 months, 2 weeks ago
Feel you man, in AZ, self employed -- barely. Booming for the last five years, went straight to nothing overnight. I have tried to neg. something with the bank, it seems they would rather forclose. Odd business decision considering housing values have slid so much, the inventory of repos is overwhelming, and they have an owner with solid pay history for years offering to push the loan to forty just to stay. Keeping people in their homes will help keep the values from continuing to slide, something it seems they would like to try to do.
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jonnathen7 months, 2 weeks ago
I am sorry people are having issues, did buying a home bigger than you needed or could afford. We put 34% down on our home 15years ago. Have never been late or missed a payment. Because others brought bigger and nicer than they could afford with nothing down, and now are in foreclosures. Hey, my home value has decreased (fair) It is about greed and trying to get something for nothing. I feel for these people for losing their homes, no sweat equity or cash down payments, what are they really losing? No one is feeling sorry for me, but I am paying the price for their stupidy and gread.No cash down no home.
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vaughnvdg7 months, 2 weeks ago
With the exception of CALIFORNIA all of these states were RED STATES in the 2004 ELECTION. A few of them went BLUE in 2008. Moral to the STORY- SHOULDN'T HAVE BELIEVED IN GOOD OLE GEORGIE AND WENT OUT AND SPENT THE BUSH-BUCKS THAT YOU COULDN'T AFFORD TO PAY BACK!!!!!
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hdthehn7 months, 2 weeks ago
No it is not foreclosure. It is however Bush's and his supporter's legacy. Enjoy the rath the GOP has brought upon their fellow citizens and the rest of the world's citizens too.
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Long live the GOP and the honor and decency they have restored to the Oval office from the very first hour of the very first day.. Harharhar!
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honestispolicy7 months, 2 weeks ago
Some idiots really make their parents look like fools, such as ningyo. This morons' hatred for President-Elect Obama is so unyielding, he's confused about genetic structure, meaning his moth
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JEBUS087 months, 2 weeks ago
im going to try to do a little nostradamus here - 100% of us treasury faces foreclosure due to the withdrawal of chinese, saudi, and the likes of other foreign investments - i call first amsterdam gets my house and makes it a coffee shop - quick call your house know before they do
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p.s. italian pizzeria was a far second -
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jaern7 months, 2 weeks ago
I was looking around on the net today and pulled up a real estate listing for foreclosures in my area - SE Michigan- just to see what's going on. Just in my zip code (and there are 2 for my city) there were 182 listings. There are a lot of white and blue collar auto industry workers in my area so I am sure its going to be even worse. I was too afraid to click on the "What's your house worth" .com site. For now, ignorance is bliss....
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