Real estate killing
We have so many foreclosures that the court can't keep up with the backlog. Were these people cheated by brokers? Or, are these the same people who two or three years ago were crowing about the killing they were making in real estate?
Should I feel sorry for these homeowners or should I think they got what was coming to them?
It's got to be a pretty horrible ordeal to lose your home.
Should I feel sorry for these homeowners or should I think they got what was coming to them?
It's got to be a pretty horrible ordeal to lose your home.
posted by Ana Veciana-Suarez at 9:25 AM
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4 Comments:
Alot of these foreclosures are due to our economy. You know, the one were middle class individuals are no longer middle but lower. Everything we use in order to live, gasoline, car insurance, home insurance, taxes, everyday items, such as milk, (almost $5 a gallon), groceries in general, tuition, insurance premiums, deductibles have gone up in price, it's increased enormously. Also, many individuals are jobless today, people who work in construction, cabinet making, etc. So, don't be quick not to feel sorry for anyone losing their home. Ana, you should feel sorry for any homeowner that loses his home to foreclosure. The only individuals that do not care if their house is lost in a foreclosure are those that are defrauding the system. Tell me Ana, Should I feel sorry if you ever lose your house?
Maybe a few of the foreclosures are caused by people who have lost their jobs, but the vast majority are people who (A) considered it an investment that couldn't lose, or (B) bought more house than their income would ever support. The old standard was 28%-36% of your income for housing expenses. Many people were spending 45%-50% on housing. Also, many newcomers were only shown last year's $2,000 tax bill, not realizing that when they paid $300,000 for a house, the taxes would jump to nearly $9,000 a year, plus insurance. In most cases down here, renting is cheaper than buying by a wide margin, and if you accumulate the savings, it will be more than any amount of appreciation on the house.
This is why houses are going on foreclosure. Let's get two things straight first:
1. The majority of all foreclosures are coming from people that bought homes and condos from 2004 until today.
2. Those people were uninformed of how to be financially sound in their decision. It was an old car salesperson game of "You can afford that payment". All they didn't know was that the payment would go up by 50% in less than a year.
3. No control or standards for lending money. Banks are getting what they deserve finally.
I earn more than $100K a year, still I cannot afford a good home in the city. My household income is $170K and I am still struggling to buy a home. It's easy to buy a property, it is hard to prepare for the future. In my case, I live a very frugal life - no credit card debt, no junk debt, no crazy 50K car in my house. Still, if I buy a house today at a good neighborhood (let's say Miami Shores) that means my ability to save money every month is out the window...
and I won't be living in a mansion. I will be living in a small 3 bedroom home. That makes no sense whatsoever.
So, I have been waiting for the right time, the right property and I will only offer an amount I can afford, not a penny less. If the homeowner is offended by my offer - as many have been - then keep the home and go to foreclosure as many have already...
free market economy baby!
It seems many of these people bought way over there heads with no interest or adjustable loans. What were they thinking? Plenty of fraud as well. There are very few of these people that I would be feeling sorry for. Hi Ana miss seeing you at the gym!
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