Comments on: What is causing so many foreclosures in todays real estate industry?

By: skincareconsultantforhire1

skincareconsultantforhire1 — Tue, 19 May 2009 06:39:34 +0000

WELL PEOPLE NEED TO PROTECT THEMSELVES TODAY WITH A PLAN B LIKE ROBERT KOWASISKI AND DONALD TRUMP DO IN RICH DAD POOR DAD THE BOOK TALKS ABOUT WHAT IS A GREAT INCOME SOURCE AND MY PLAN B IS NETWORK MARKETING SO I WILL HAVE A SECOND SCORCE OF INCOME FOR MY FAMILY TO PASS DOWN TO MY FAMILY AND ARBONNE SELLING THE BEST SKIN CARE IN THE WORLD HAS ALOWED ME TO DO THIS ARBONNE IS AHEAD OF THE DSA AND WE HAVE THE TOP SKINCARE THAT PEOPLE WANT BECAUSE WE ARE FORMULATED IN SWERTHLAND BY THE TOP SKIN CARE CHEMIST IN THE WORLD AND MADE HERE IN THE UNITED STATES IN CALIFORNIA AND HAS GIVEN FAMILY A HUGE INCOME SO THEY DON’T HAVE TO GIVE UP WHAT THEY HAVE TODAY WE ARE PURE SAFE SWISS AND BOTANICAL AND WE HAVE PROVEN RESULTS SO SHOW MOM MY WEBSITE AND TELL HER THIS COULD BE HER PLAN B TO SAVE THE FAMILY HOME AND BRING HER INCOME BACK TO WHERE IT NEEDS TO BE AND IT IS ALSO THE GREATEST JOB IN THE WORLD PUTTING THESE PRODUCTS LIKE OUR RE9 ANTI-AGING ON WOMENS SKIN TO HELP THEM KEEP THEIR LOOKS BECAUSE WE REALLY DO WORK WITH THE TECHNOLOGY WE HAVE IN OUR INGREDIENTS NO ONE CAN OR WILL EVER COME CLOSE TO US. SO HERE IS MY WEBSITE HTTP//:WWW.BEAUTIFULSKINSTARTSHERE.MYARBONNE.COM AND YOUR WELCOME FOR A PLAN B FOR YOUR FAMILY THE NETWORKING WAY PLEASE FEEL FREE TO CONTACT ME AT ANYTIME OR JUST CLICK ON MY PROFILE OR 360

By: SPMOSHER

SPMOSHER — Mon, 18 May 2009 18:25:37 +0000

Because of the easy qualify, no down payment loans, taken by anxious people desperate to get in on a market that was spiraling higher and higher. Encouraged by sometimes predatory lenders and real estate agents.

It was often said that if one Realtor said no, another would find a way to say yes. Same with lenders.

Granted, sub prime mortgages are getting hit hard, but they are failing because so many were after the quick sale, the fast bonus and biggest paycheck, and the American dream. People were blind to the possibility of failure, because real estate was the “sure thing” and they couldn’t possibly lose, and now lenders had more money to give, at higher interests rates and using interest only ARMs.

Many went in with good intentions, just not the best financial planning; often with a high debt to income ratio, thinking they could refinance, or flip and sell and come out ahead. And they did this with the blessing of the Realtor and the lender. All three are culpable.

By: ebmid2

ebmid2 — Sun, 17 May 2009 07:15:35 +0000

Interest rates went up, and that made housing payments to go up. Some people couldn’t afford to pay more, so they lost their houses.

It’s not related to the war or Bush. The problem was caused by some people buying houses that they could barely afford, so that if the payment went up, they wouldn’t be able to afford it. And the mortgage companies are also partly to blame, because they shouldn’t have given people those loans in the first place if they weren’t going to be able to repay them.

By: Rick A

Rick A — Sun, 17 May 2009 03:02:25 +0000

I am a real estate agent and there is one word that is causing it.

APPRECIATION

The house values are not going up ie: appreciating

You can read about all the reasons causing it but to sum it all up in one word its lack of appreciation.

See…if there was APPRECIATION then values would go up
If there was Appreciation then people could refinance
If there was appreciation then people would have desire to buy something that is increasing in value not decreasing.

Once we see APPRECIATION all these problems will be solved. Mark my word, watch the news, check out the numbers and when houses start appreciating again the market will pick up again.

By: redinexo202

redinexo202 — Sat, 16 May 2009 08:07:23 +0000

Our economy is heading straight into a recession. With the war onset, people are concerned with what is going to happen. Also, there is only one person supporting their families. NOt to mention the fact, that fuel prices are increasing, which is increasing the costs of many other things. But there is no cost of living raise(at least where I’m at). There has however been a 7% raise to lawmakers of my state, who already make 6digit incomes already. I just dont understand it. But the housing market is going to continue to dive until there is more overall stability in the economy, and we quit pissing off other countries. Oh yeah, I forgot that our dollar is worthless these days, ( which may not directly be related to the housing market, bu is an indication of how crappy our economy is)

By: Kiker

Kiker — Thu, 14 May 2009 02:43:38 +0000

Okay. I am going to keep this short, but this being a complex issue, it won’t be a short answer.
Toward the end of the 90s, the economy was starting to stall. The South East Asian Financial Crisis was just fixing itself and the Congress just finished giving $1 Trillion in bailouts to various Hedge Funds and Investment Banks. As we headed 2000, the economy was in a known gray area, and when we had the Internet Bubble popping AND the 9/11 attacks, our economy was heading into a nose dive and fast. So Al Greenspan, the then Fed Chairman, incrementally started lowering the Federal Funds rate until it hit a historic, all-time low of 1%. This naturally made home mortgage rates the lowest in history, hovering around 4.5% (insane to say the least). So, what we saw was a massive push on the part of speculators hedging the housing bubble to pop and then we had house-flippers (a major culprit) increasing their involvement. So, when you have a house-flipper buying a house, and then a few weeks later selling it for a profit, this sends a signal to the market that there is a huge demand for homes, when in fact there is NOT. The monthly MBA (mortgage brokerage applications) report coming out shows only numbers of people, NOT their intensions. So, this sends a signal to the home builders that X amount of people are looking for homes, when in reality its not that many since some of them only want to actually LIVE in the house. So we have tons of homes being built, with not an actual number of people looking to live in them.
Then we have the simple economics of the massively low Fed Fund rate. Simple economics states that if risk is not properly priced into a security or into the market, the investor and the consumer will not act responsibly. With these historic low figures, people got into home loans they never should have been in because of the teaser rates that attracted them. Now, these people are largely to blame and more importantly, they failed to take into consideration the actual impact the teaser rate reseting would have on their monthly payments. Most of them assumed they would likely resell it for a profit, which never happened since the housing bubble popped.
Now, there are many investors who saw this coming. Mainly because the actually inflation being measured was purposefully not counting home prices, largely due to speculators. The reality is, inflation in home prices was hovering between 8-10%, which means we were set for a massive correction since there is no means of sustaining these prices.
The bulk of these foreclosures therefore are coming from people that should never have been in the market to begin with. This is just the foreclosure issue and not the credit issue, which is tied together.
This has nothing to do with the Democrats or Republicans, or the President. This is also an international issue, since the credit crisis that stemmed from these foreclosures had investors in Europe, the UK, Canada, and S.E. Asia.
Now we are seeing houses dropping in value, some as high as 30% in some areas. This is ABSOLUTELY going to continue until the beginning of ’09. The inflationary pressure placed on this market has shot the prices up with no substantial foundation for so long that this correction (likely the worst in history, but definitely in the past 20 years) will follow the normal 18 month course that corrections of this magnitude warrants.

I hope this helped. Its a huge issue and if you have any further questions, I would love to explain it in greater detail for you, just send me a message with any specifics.

By: MassLass

MassLass — Wed, 13 May 2009 05:25:27 +0000

People can’t afford to buy. It’s only going to get worse if we continue on this corporate road we’ve been on. The middle class is being squeezed out. If it keeps up, there will only be the rich and the poor.

Too many people are hung up on things. The important things are food, shelter, clothing, transportation, utilities, and misc. household items. All the extras are just things we want, not things we need. We just get in over our heads over things, pure and simple.

By: David M

David M — Tue, 12 May 2009 19:42:57 +0000

When the housing market was good (when you were rich from your mom selling homes) buyers were buying homes with adjustable low interest rates. Now these adjustable rates are adjusting and resetting higher than what they were. This is causing their interest rates to rise and that causes mortgage payments to rise. Know mortgage payments are rising and people can’t afford them thus causing foreclosures.

People today are still buying homes but with so much inventory and a wide verity of homes to choose from not all homes are getting bought. In today’s market even though possible it is difficult to obtain a 100% loan for a home. Back when your mom was selling alot of homes a 100% loan was very easy to obtain just by stating what your income is and stating what your assets are. All you need was a good credit history.

By: DannoREA

DannoREA — Fri, 08 May 2009 22:48:27 +0000

People bought homes they couldn’t afford and now they are being thrown out of them.

Be glad you still have a place to live. It could be much worse.

By: armydug

armydug — Tue, 05 May 2009 12:30:02 +0000

The high rate of forclosures is due to several different things happening all at once. Here are just a few:

1. Mortgage lenders created new ways of lending to those people who would not have (and probably should not have) been able to qualify for a typical home loan. These “special program” loans had much higher interest rates than normal.

2. People wanted to own a bigger, better, more expensive house than they could afford, and so they opted for ARM’s or Adjustable rate mortgages, that started at very low interest rates. This meant that people paid lower monthly payments initially, hoping that as the rate increased over time, so would their income, and their ability to repay it (a very bad idea, since noone can predict the future)

3. The economy changed, rates went up faster and higher than people expected, and then so of course did their payments (which of course were more than they could afford, that’s why they were using an ARM)

4. Very large financial institutions bought up these funny-money mortgages (see item 1) hoping to cash in on their higher interest returns.

When things turned worse economically, and interest rates went up, all of these thing came back to haunt us and the market collapsed. That’s the root reason of why your mom isn’t selling houses as fast as she used to.

The good news is, these thing always have a way of turning around to the positive again. Just be patient. Things will get better for you and your mom in time.