2006-10-19 04:12:05 · 11 answers · asked by Gettin_by 3 in Politics & Government ➔ Politics
I appreciate all of the intelligible answers.
Name callers on the other hand...we get it.
2006-10-19 04:34:26 · update #1
Because people refinanced their butts off to pull money from the property until they were maxed. They did this so they could have granite counter tops, SUV's, Big Screen TVs, and houses full of new furniture. Now the 2 years is up and it's time to either refinance or face the higher interest rate. In some markets they are now upside down in the house. In Florida we are also having the problem where insurance rates are higher than the mortgage and this premium that was raised over 100% was dumped on the consumer in one years time. Many of those who have no mortgage are just dumping their insurance and taking their chances, then there are those that just can't afford it and just walk.
2006-10-19 04:24:36 · answer #1 · answered by Anonymous · 1⤊ 0⤋
Let's see. People purchased homes using interest only loans. People purchased homes using adjustable rate mortgages. These loans have now come due and the payments are higher because of higher interest rates.
So if you get forclosed on, you did not pay your bill or you bought a home larger than what you can afford. It is not an economy issue, it has to do with if people are dead beats or not.
Two people on my street had their houses forclosed on. One could afford professional football tickets, purchased $10K worth of windows, etc. He and his wife were working full time, but those items were more important to him than paying their bill. Their debt snow balled and finally caught up to them. They had the money, just used poor personal judgement.
The other family bought a large tract of land with the intention of building on it. Problem was that they couldn't afford their house, the car, and this new purchase. They tried to sell both properties, but they could not do it fast enough to get out from their own stupidity.
There are may reasons why people get forclosed on. All of the ones that I personnally know about were for poor personal judgment or someone who was a shop a holic and racked up a lot of debt. No one lost their home because the recently lost their job.
But these are facts that are not shown on foreclosure reports. So you can twist the facts to ask your question.
2006-10-19 04:25:05 · answer #2 · answered by Anonymous · 1⤊ 0⤋
Actual forclosesures is not at an all time high- but the percentage increase in the amount is at an all time high. there is a big difference- that is from those people whom did not utize the housing suirge in the correct manner and thus the economy is punishing them. People paying they their bills spesonisbly is not always connected to the economy. You want to see strength of the economy take the gross domestic product and minus the national debt off of it- as of right now the national debt is at 2.6 percent of the GDP which is the lowest in about a half a century.
2006-10-19 04:22:59 · answer #3 · answered by Anonymous · 2⤊ 0⤋
Because people are getting loans that keep the payments low for the first 3-5 years (ie Interest only loans). Thus they buy as big of a house as they can afford, and then a few years later when the loan payments jump up, they can no longer afford to make payments.
2006-10-19 04:16:27 · answer #4 · answered by TopGun 2 · 1⤊ 0⤋
If foreclosures are up, it is more likely because of all the people who have overspent during the past decade and are swimming in debt anyway. That really isn't the economy's fault.
2006-10-19 04:23:22 · answer #5 · answered by Crusader1189 5 · 1⤊ 0⤋
Because people where stupid enough to use a adjustable rate mortgage and or a interest only mortgage .
Oh and in case you didn't see it or read it the housing market is not doing well unlike the stock market
2006-10-19 04:59:53 · answer #6 · answered by Fatwa Freddie 3 · 0⤊ 0⤋
When you have home ownership at an all time high, then naturally you will have an increase in foreclosures ! Take an economics class, all your questions of this nature can be answered with an education. It's obvious yours is lacking !
2006-10-19 04:21:03 · answer #7 · answered by jerry4_fun 2 · 2⤊ 0⤋
Manipulating THE REPORTS LIKE ENRON DID IS A GOOD BUSH ADMINISTRATION TRICK .
See all you do is end the job or transfer the person who compiled the information in a format that made the information accurate and understandable .Now they toss around the nubers of those who file and do not account for those that ran through all the benefits and did not return to work .THat number would make unemployment look like 11% which is where it is .
2006-10-19 04:19:07 · answer #8 · answered by playtoofast 6 · 0⤊ 4⤋
high forclosures does not mean the economy is not good
2006-10-19 04:19:24 · answer #9 · answered by David M 3 · 3⤊ 0⤋
thats news to me. where did you dig up this fiction?
2006-10-19 04:13:50 · answer #10 · answered by Doctor Shiraz! 1 · 0⤊ 0⤋