Is Foreclosure for You?

I did everything the way you were 'supposed to'... I didn't get into a huge mortgage, didn't come even close to draining my house of equity, made all my payments on time, owned only one home, etc etc. I had to relocate for work, and things went downhill quickly from there. Two forclosures in my area (from people who were caught trying to flip) and that brought the market to a standstill. Headlines screaming about how prices are falling lower every day, keeps the market dead with every one waiting to see how low it will go before they have to buy. I've had my house on the market since August without a single offer and have now missed my first payment.

I did everything the way you were 'supposed to'... I didn't get into a huge mortgage, didn't come even close to draining my house of equity, made all my payments on time, owned only one home, etc etc. I had to relocate for work, and things went downhill quickly from there. Two forclosures in my area (from people who were caught trying to flip) and that brought the market to a standstill. Headlines screaming about how prices are falling lower every day, keeps the market dead with every one waiting to see how low it will go before they have to buy. I've had my house on the market since August without a single offer and have now missed my first payment.
What I can't wait to see a few years from now is exactly who the mortgage industry will sell to, as most of us will have subprime credit now, with no loans in sight. A very wealthy few will be landlords over the rest of us - probably the same people who own most of the megacorporations. A national story of the 1920's all over again - being forced into buying at the company store and renting the company housing so that you own nothing, owe everything, and work for someone else your entire life.

Part of the problem is the media fanning this sensationalism. I have been in real estate and loans and havbe been an REO director and relocation manager. In the 90'sin New Orleans we had the oil crunch. 50,000. boarded up houses. Not as bad as this nationwide but BAD. Ok. good advice here. If you can refi your primary mortgage you will find that the rates are lower than they have been in two years. Get a MORTGAGE BANKER or BROKER. as they shop for you. If you can possibly keep your house..DO IT..Do not use your house as a slot machine just cut up your cards, pay all the small stuff off..Pull your IRA..yes, tax consequensces but pull it and pay the morgage for a year..Any other assets you have need to be sold and just pay off the house down to a reasonable point. Rent may not be cheaper for you. i was laid off and have

I have been in real estate and mortgage banking for 20 years, and have been an REO director and a relocation director. Rates are at the lowest they have been in two years. Many adj. still exist..many folks would be better off refinancing now..not using their home as a slot machine but refinancing their mortgage owed.
You cannot cry over spilt milk of no profit, just pray you can get enough to do the refi. Cut up your credit cards except for one. TGhe banks createedthis mess and none of us are happy about it..But life is what it ius. Pull your IRA and pay athe pepenalty and get out of the mess you arein..Pay the note for a year. and then if all else fails..Then you do deed in lieu.

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Fourteen years ago we went through the same situation, and like one of your comments, we called our creditors and our lender, to explain that my company had been closed and I was laid off and California was going through a terrible foreclosure crisis with no hope of selling our property. I called the lender to see if we could make the interest part of our payment with my unemployment and tack the principal to the end of the loan but was told by the lender that if I couldn't send the whole payment, they didn't take partial payments, so don't bother. Before I got off the phone with my credit card companies they had closed my accounts, so I was left with nowhere to turn but bankruptcy and foreclosure. Good luck to all of you, because what the experts advised us to do didn't work, and no one in the government, at least in California at that time cared, so we lost everything, and haven't been able to get another house yet. My husbands health took a significant turn for the worse and he's been unable to work for the last twelve years so it doesn't look like we will ever buy again, which may not be such a bad thing.

I am a real estate agent with a company we all know and respect. I am an investor. My hubby and I own several properties in Philadelphia neighborhoods that we rent, and because of the foreclosure crisis, our portfolio is growing. (An oxymoron of sorts??? someone else???s misfortune, is our family???s opportunity). I am also a software engineer for a small software company (no layoffs just yet??? thank God). In 2005, my hubby and I sold our home for 2.5 times what we purchased it for (purchased in 1997), and we purchased a bigger home for our family (Nov 2005) in a suburb right outside of Philly. I???m saying all that to say, I have seen and experienced this real estate thing, from every side of the box.

I???ve only been a licensed real estate agent for 2 years now, and in that period of time, I ALWAYS told buyers (who I do not like to work with??? my experience is that the majority of them have champagne tastes, yet beer budgets or they???re simply trying to keep up with the Jones???), that I do not advise on lending matters. The only advice I can give is to research the lender, compare lenders, research financial terms, and most importantly, KNOW WHAT YOU ARE SIGNING because at the end of the day, I get a commission check and go on with my life and that THEY, THE BUYER(S) are stuck with the bill. So, please proceed with caution. I witnessed so many people buy homes they could not afford ??? Clearly!! So who???s to blame? Well, we all have to be responsible for our own actions ??? period! Sure we can point at everyone else, lenders, government, etc??? But who signed the papers? Who had beer budget and champagne taste? I was that buyer when I was 21 and purchased my 1st house. But now at age 32, I should know better. I guess there is a lesson to be learned for everyone.

But now, O??? Meilly???s house will be purchased by an investor who has cash money. He???ll buy it at way lower than market, fix it up, rent it until the market recovers (in maybe 3 or 4 years)???and then sell it. While???s he???s renting it, he???ll make plenty of money (to pay for private school for his kids) and be happy, and then when he sells, make even more money. Interesting.

Maybe it???s true what they say??? the rich get richer and the poor get poorer.

Despite it all???Sorry, Ms O???Meilly. I hope you find your way! Peace and Blessing to you!!

Our problem is that at this moment we own 2 homes and we're in the mist of trying to sell one in Illinois while living in Indiana to be closer to sick parents. Then you have all your other expenses and bills. We have decided to continue mortgage payments and have almost had to let the other bills go. Not a good senario but the homes are the biggest equity and we don't want to foreclose.

I am a full time Real Estate Appraiser of 20+ years in the Flint, Mi. area and I have seen most of the market area under attack by these economics. The Auto Industry is what carried the majority of jobs in our state. Now, because of NAFTA, all the good paying jobs are performed in other countries for pennies on our dollar. How can we spend bilions to help other countries, and we can't sell any of our goods their? Why? We have become a fat spoiled baby who wants instant gratification, makes a ess and expects others to clean it up. Our Govenor has not provided any new jobs. The mayor is a old car salesman, and everyone is out for themselves. As for the real estate market... IT WILL GET A LOT WORSE BEFORE IT GETS BETTER. What the market is actually doing is self correcting. It was bound to happen. The housing market needed brakes.
As for Michigan? I see no hope. For every person who moves into our beautiful state, seven people move out.

I am a full time Real Estate Appraiser of 20+ years in the Flint, Mi. area and I have seen most of the market area under attack by these economics. The Auto Industry is what carried the majority of jobs in our state. Now, because of NAFTA, all the good paying jobs are performed in other countries for pennies on our dollar. How can we spend bilions to help other countries, and we can't sell any of our goods their? Why? We have become a fat spoiled baby who wants instant gratification, makes a ess and expects others to clean it up. Our Govenor has not provided any new jobs. The mayor is a old car salesman, and everyone is out for themselves. As for the real estate market... IT WILL GET A LOT WORSE BEFORE IT GETS BETTER. What the market is actually doing is self correcting. It was bound to happen. The housing market needed brakes.
As for Michigan? I see no hope. For every person who moves into our beautiful state, seven people move out.

Interesting how Mr. McGinn describes the "surprise" O'Meally received when her interest rate shot up and she was forced to pay insurance and taxes on top of it all. What's surprising to me is the fact that someone can enter into a contract like that and not know the details.

We work with homeowners and purchasers to negotiate a better deal with the lender/developer just like O'Malley who thought the market would go up forever. The response has been positive. David

Bankruptcy is not smart. Paying your bills, working with your creditors is. I say that a home equity loan to pay off credit cards is stupid. Home equity loans hurt everybody.

If people would educate themselves, hire an agent with an ABR after their name, and look at real estate as an investment that they could lose their a*** on, it would help a lot. Further, stop throwing a fit and pressuring the appraiser when they cannot support a value. Don't go to a mortgage broker; go to the banks. If they turn you down, find out why, save some more money and fix your credit.

I got out of selling real estate, because i WAS HONEST AS i COULD BE WITH A BUYER. dON'T BUY A HOME WITH STARS IN YOUR EYES. Also, as an appraiser, you would not believe the fits a buyer, agent, and lender will throw when you can't justify a value. Further, the market is correcting itself. Un like oil or wheat or pork bellies, it doesn't change overnight. Greed drives the market. Get an agent to represent you in any deal. It's worth it. to have a buyer's rep w/ and ABR after their name.

I would like to have a real estate agent or mortgage broker out there explain the following statement that was said to many new home buyers: "You should get into the housing market now before it is too late. If you can push to get in now with the ARM and the low teaser rate, you can always refinance in a couple years before the loan adjusts. The market has historically always gone up. In a couple years, you'll have more equity built up in the house and then you can refi. So, if I was you, I would get in now. The market is hot!"

Many new home owners weren't educated about buying real estate and trusted their real estate agent and mortgage brokers for advice. Many of them are good, but many of them are also self serving. Why? Because that's what puts money in their pocket at the end of the day. It's easy to blame the unsuspecting new home owner, and it's easy to say that they should have known better. But, many of them trusted their real estate agents and mortgage brokers, and they took their advice as golden. Unfortunately, the writting was on the wall. Just like the internet bubble/burst. When it doesn't make economical sense and something smells way, way fishy, you are probably right.

Also, some real estate agents and mortgage brokers had a tendancy to feed the heard mentality of "don't be left behind" when speaking with buyers. I feel sorry for many people who pulled out the equity in their homes to invest in condos and second homes. People, being afraid to be "left behind" in this "hot housing market", decided to "invest" in second properties and are now being caught with their pants down. Some flipped and made money, some continued to flip and will soon themselves be homeless with a portfolio of "investments" they can't sell.

When you start seeing shows on TV that are about "investing in stocks and the internet" then "how to flip a house", you know something is awry. And, if you're seeing that on TV, you are probably getting in at the tail end of the boom. So be careful next time, when someone is telling you to get in before it is too late. Smart investors are selling when everyone is buying, and buying when everyone is selling.

Now you are hearing "invest" in foreclosures! Instant money! Problem is, the average American has no money left after the internet / stock market bust, now the housing bust. No wonder the savings rate for Americans is at an all time low.

Overall, though, everyone from the new home buyer to the bank is guilty for the current home market mess!

I would like to have a real estate agent or mortgage broker out there explain the following statement that was said to many new home buyers: "You should get into the housing market now before it is too late. If you can push to get in now with the ARM and the low teaser rate, you can always refinance in a couple years before the loan adjusts. The market has historically always gone up. In a couple years, you'll have more equity built up in the house and then you can refi. So, if I was you, I would get in now. The market is hot!"

Many new home owners weren't educated about buying real estate and trusted their real estate agent and mortgage brokers for advice. Many of them are good, but many of them are also self serving. Why? Because that's what puts money in their pocket at the end of the day. It's easy to blame the unsuspecting new home owner, and it's easy to say that they should have known better. But, many of them trusted their real estate agents and mortgage brokers, and they took their advice as golden. Unfortunately, the writting was on the wall. Just like the internet bubble/burst. When it doesn't make economical sense and something smells way, way fishy, you are probably right.

Also, some real estate agents and mortgage brokers had a tendancy to feed the heard mentality of "don't be left behind" when speaking with buyers. I feel sorry for many people who pulled out the equity in their homes to invest in condos and second homes. People, being afraid to be "left behind" in this "hot housing market", decided to "invest" in second properties and are now being caught with their pants down. Some flipped and made money, some continued to flip and will soon themselves be homeless with a portfolio of "investments" they can't sell.

When you start seeing shows on TV that are about "investing in stocks and the internet" then "how to flip a house", you know something is awry. And, if you're seeing that on TV, you are probably getting in at the tail end of the boom. So be careful next time, when someone is telling you to get in before it is too late. Smart investors are selling when everyone is buying, and buying when everyone is selling.

Now you are hearing "invest" in foreclosures! Instant money! Problem is, the average American has no money left after the internet / stock market bust, now the housing bust. No wonder the savings rate for Americans is at an all time low.

Overall, though, everyone from the new home buyer to the bank is guilty for the current home market mess!

I think people need a basic math class. The buyer thought they could afford a 2000.00 house payment on 3500.00 income (give me a break). I think the common American needs a match class and not a "flip this house greed mentality" . When are Americans going to stand up and say they screwed up instead if putting the blame to another and letting the responsible ones foot the bill. If this is our great country today I feel sorry for my children and the future they face.