Is there still an American Dream when most homeowners will be caught in foreclsoure proceedings?

Question

There is no shortage these days of tragic stories of homeowners caught in America's subprime mortgage meltdown, as risky borrowing, reckless lending and a slump in the housing market drives millions into foreclosure.

"The more people who own their home, the better off America is," President George W. Bush said in a 2004 speech. "See, we want more people owning something because when somebody owns something, they have a vital stake in the future of the country."

But with an estimated 1.5 million homeowners facing foreclosure this year, Congress is now looking at tighter lending standards to protect unwary Americans from taking on loans they cannot afford.

Answer 1

your statements are true. but the dream will always be there the problem is when ppl get approved. the buy at the highest amount of the approvel there by living well be yound there means. i have a family of 5 on one income of 10hr no over time we own a small doublewide trailer 2 bedrooms on a quater acrea lot. but because we shopped around and bought what we could afford. not for what we were approved for its been 3yrs now we owe less than 55 thousand total we did 12 thousand down. our house in just the last 3 yrs has gone up in value to just under 100 thousand. we didnt have the 12 thousand ourselfs we got that from family with small payments each mounth and no interest. there are many ways to keep your starter house cost down. next yr we will be using the collateral in this house to buy our second home as a rental property. we have what they call a florida room on the front of the house and it is closed in but not heated or cooled so were make that into a two different rooms it is the kids play room now but half is being turned into my daughters bedroom. we plan on buy 1 house every other year. till we have a total of 5 not counting the one we live in and then retireing. well i hope that helps some ppl out there it can be done just do it smartly you never no when youll get hurt or your job is gone and your current income will be at stake so if there is 2 incomes in the family only buy a house that can be run on 1 of those so you can plan for a rainny day. and never buy more than you need. smaller to start is always better. Good Luck all God Bless

Answer 2

First, lets not distort the facts. By all accounts foreclosures are up less than 15% over last year. While significant, this means that "Most" homeowners will pay their mortgages, build equity and live the American dream.

Second, the number of people who will become homeowners is not dictated by the number of people in foreclosure but rather by housing starts. Housing starts are still strong in most areas of the country. Houses that go into foreclosure ultimately go back into the market and become part of the American dream for someone else.

I find it difficult to believe that there are many people who were forced to take a mortgage, not understanding that they would not be able to pay it. The disclosures required clearly indicate the possibility that a mortgage will rise and at what rate it can rise.

Finally, quickly escalating property taxes are as much to blame for foreclosures in many parts of the country as are subprime loans. Until we have real property tax reform, the fact is that many people are not going to be able to afford the American dream of home ownership. In many areas as much as 30% of a mortgage is property tax.

Answer 3

First of all, 1% is not "most homeowners".

Second, more government restrictions are not the solution.

Third, if it was the solution, I don't think that a government that is itself bankrupt (check the National Debt) is qualified to tell an individual what they can do with their own money, nor tell a lender who they can lend to.

Fourth, if the federal government were itself financially responsible, there would be no National Debt at all, and interest rates on home mortgages would be about 2%, meaning a $300,000 mortgage would cost $1100 per month, instead of about $1900. If the government spends more money to "solve" this problem, that's only going to get worse.

Other than paying its own debt, anything the federal government does regarding this "crisis" will be detrimental.

Answer 4

Of course there is. MOST homeowners will not be caught in foreclosure proceedings. MANY homeowners don't even have a mortgage.

People who overborrowed, WILL be caught in foreclosure proceedings. People who live UNDER their means, won't. People who live OVER their means, will.

It's all about sound financial strategies. Most of the foreclosures were for interest only or high risk loans, who were likely to not be able to pay ANYWAY. No surprises here!

Many Americans these days are money-stupid. There's no real reason to be, except laziness. It's not to hard to figure out, if you keep borrowing and borrowing, eventually you're going to borrow yourself into bankruptcy.

Your grandmother would have told you, if you can't pay cash, don't buy it. Save your money. You should have listened to your grandmother.

Answer 5

Less than 1% of homeowners will go through foreclosure, and the vast majority of those will lose nothing, since they put little or no money down. the losers are investors in the subprime lenders that will go bk. Those foreclosed on will simply sit and pay no mortgage or taxes for 12 months will they grind through the foreclosure proceedings, then move back to their old rental days.

Answer 6

Again, it is the president's fault............when will you people "move on" Home ownership is a great opportunity for the individual and it is good for American business.

Lenders are in business to lend, it is up to the new home owner to pay the mortgage.

"unwary" to be protected by Congress, are you nuts.......If 1.5 million are facing foreclosure, who's fault is that? The government can never do enough for you breast fed babies.

Answer 7

LOL-- nice political post there pal. But in reality, MOST americans are still doing fine and can afford their own houses. These people who are having issues now ( which eqautes to about 10% of the homeowners in the county) were put into homes they could never really afford from the start.

Answer 8

Foreclosure happens for many reasons but on the flip side it has become an ugly business by greedy bankers and lenders who are a real problem in the country now but Congress is going to stick their noses in it and screw that now too so yes it's dead. That's another reason to vote for the fair tax who cares about deductions and getting money back when you get to keep it.

Answer 9

The people who own their home have no worries about this. It only bothers those who have borrowed money and used the house as collateral, therefor giving ownership away.

They only own the money they borrowed, the finance companies own the houses.

But it is not an important distinction since in America, no one owns a home, just the right to pay tax on the home and property. Don't pay the tax and you will soon learn that you do not own the home.

Answer 10

The American Dream is to own your own business. Go to www.workathomeunited.com/joanntal