Trend in foreclosures?

Question

I've heard that many people have had to forclose on their homes because of interest rates..and other current economic conditions. Has anybody noticed this trend? What are the ramifications?

Answer 1

Yes, in fact it was an accident waiting to happen and I have been watching for the first signs which began with the housing slow down (people buying) with interest rates rising.

The next thing to go was all the folks that did the "funny financing" with the ARM (big mistake) who could barely afford the interest rate when it was low. They are in a panic because they have seen their monthly mortgage payment go up and up and up...

You will next see the mortgage companies that over extended themselves with these loans going belly up.

It is a ripple affect happening and it could be a pretty serious one too.

Add to this, people are maxed out with credit card debt and I think we will begin to see a new type of homeless out there...folks from the burbs living in their SUV's. Sobering thought.

Answer 2

I really believe that many of these foreclosures have a lot to do with folks getting in over their heads in the first place. I know a lot of people dream of owning a huge "McMansion"
but the fact of the matter is it pays to be conservative and have a realistic monthly payment for a reasonably priced home. Not getting in over your head to begin with has something to do with it.
Don't get me wrong, I hate to think of any family losing their home, its horrible. But we all would do well to make an effort to be satisfied with less, myself included.

Answer 3

if they bought houses to flip, and the market cools down and the rates are high, they may be in trouble, especially if they lose their job due to economic conditions. ramifications are they lose the house, and maybe you could pick it up for what they owe on the mortgage, which might be a good deal or may not be.