| The forclosures are going wild right now. 'They' say one of the main reasons is due to the ARM mortgages and the internet mortgage companies. When the market was booming, a few years back, so many people bought homes using an ARM (adjustable rate mortgage). The rates have started to climb and that can change a mortgage from $1200 to $2300 per month rather quickly and without much notice. Most of these people were convinced that they could afford much larger houses that now they are unable to keep. During this time there were also numerous internet mortgage companies that popped up. A lot of these have gone out of business and some couldn't even come up with the cash at settlement (after you were approved and ready to go). It is definitely a very sad time when it comes to the real estate market. ↑ |
we are in the same boat here in aussie :-(
we have a variable rate (i think its the same as your ARM)and fixed rate....we put ours in a fixed rate when it was still quiet low and it has climbed up 2.9 % since. so i am pretty happy about that!...we had it bad here about 20 years ago the interest rate at that time got as high as 19% people were foreclosing EVERYWHERE.....it was a buyers boom. we have over the years been as low as 4% ...now we are at around 8%....i dont know how our kids will ever afford a home :-( ↑ |
| There are also many foreclosures due to all the no interest mortgages people took out 15 years ago. 15-16 years ago is when the banks first started the no interest loans. A lot of people chose that option because it allowed them to purchase a bigger more expensive home, now 15 years later their interest is due and they cant afford them. ↑ |
| Its been going on for quite some time..thats why i couldnt undestand why dumb head Bush said the economy was good... Good for who? Oh ya the rich.:( ↑ |
| i think what's happened is that because interest rates have been so damn low, people are getting mortgages and loans and overextending themselves WAY TOO MUCH!!! they say "hey we can afford this 500,000 dollar home..." not thinking that if interest rates go up even just 1% they're screwed!!!!! luckily hubby and I took that into consideration when we bought our home....we were pre-approved from the bank for 300,000 dollars....we could have taken that...but nope....we took out 120,000 dollars to buy our home.....our interest rate is 4.59% and we were locked in for 5 years at that rate...now in two more years when we have to lock in at a NEW interest rate i'm sure it'll be higher, BUT we'll be able to afford it...we didn't max ourselves out like so many did!!! we see so many people drivin' around in brand new 50,000 dollar cars or trucks and brand new boats towing behind them and we think "where the hell are they making their money????" they're not!!! they're up to their eyeballs in debt!!!!!! ↑ |
| well its good for my brother..He is a forclosure guy ( what ever their job titile is) he does forclosures for my uncles money lending business and is making bank..He makes about $10,000 a month..At 24 years old this isn't bad..he said it is hard though, because he has to take peoples homes from them..but he has learned to push those feeling aside and learn that busniss is business... ↑ |
| Luckily our mortgage is a fixed rate and our house wasn't very costly and it includes our taxes in the payment which is currently under $300. ↑ |
