Will the number of US families facing foreclosure, increase ?

Answer 1

Yes it is inevitable, and again the subprime industry will receive most of the blame. What is not being told however is that B & C lending which comprises nearly all sub-prime loans only accounts for 40% of current defaults. A paper loans make up the real majority. Stated, interest only, adjustable rate, and neg am loans written to A paper borrowers make up the rest with only a very few fixed A paper defaults. Why aren't we told of this ? The answer is simple, blaming poor credit borrowers for defaulting is easier for people to understand. If banks let out the real stats it would start a wave of panic across the board. A paper borrowers obtaining Alt A and non conforming loans are not subprime quality borrowers. Extending a persons borrowing power through creative financing terms is like a game of financial russian roulette. Some will be lucky and get that raise they desperately need. Others will be laid off, lose their jobs, or get no raise. Their debt service however doesn't recognize their income and soon they cannot afford their borrowed lifestyle. The current economy was kept alive by enticing people to tap into equity and now for most that is used up. Democrats and their taxes will cause prices to go up. This time they have a convenient scapegoat as this war in Iraq will cost us all dearly for years to come. What will be sad is when people here lose their homes so people elsewhere in the world can have a form of government that they don't want or need.

Answer 2

Yes. In the next few years the number of foreclosures is likely to double or triple. It's already happening in places like Boston, Pittsburgh and San Diego. Sad, but a lot of people with ARM's are in deep trouble.

Answer 3

Probably so. If they do not get their own finances under control and refinance their homes to a fixed rate soon they could be in big trouble. The ones really in trouble are the ones that bought at the height of the boom with 100% financing on a variable rate. Their homes are now not appraising for what they paid, they have no equity, and they need to come up with money to cover the cost of their original loan.

Answer 4

Property and income taxes as well as government fees and consumer prices continue to rise. I grew up in the 80's and since then alot of wages have not change much. Sure on the top-end of wages they have sky-rocketed. However, for average Jane, working in an office they have not change at all, or very little. And then, when you look at the fact that $1.00 in 1970 is the same as $5.33 in todays market. Yes, I think the number of US families facing foreclosure will continue to increase.

Here is also the shame of it..... We view ourselves as a democracy, In the dictionary definition, democracy "is government by the people in which the supreme power is vested in the people and exercised directly by them or by their elected agents under a free electoral system." In the phrase of Abraham Lincoln, democracy is a government "of the people, by the people, and for the people." (usinfo.state.gov) However, today when viewing government in the US, the majority of people do not have "power", in fact the power is in the hands of a few, who have abused that power. If one takes a look at communism, one will find many similarities in todays society. For example, you may think, i.e. tell people that you own a home (you do not have the view that the government owns the home that you live in) However, try to not pay the property taxes on that property or be found guilty of income tax evasion and see how long you occupany and claim that property to be yours.

Our forefathers are probably turning over in their graves when then see the horrible mess this country has become. I believe in their writting of the U.S. constitiution they wanted people to be fully "protected in their homes" from "intrusion of government"

Amendment IV to the U.S. Constitution

"The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated, and no warrants shall issue, but upon probable cause, supported by oath or affirmation, and particularly describing the place to be searched, and the persons or things to be seized. "

However, we are no longer protected from "SEIZURES", We are not SECURE in our own homes. In my opinion, our constitution is being violated by our US and State legislatures. So again I answer your question YES, the number of US families facing foreclosure will increase, because our government will do nothing to protect and defend our constitutional right to be secure in our own homes.

(Please note it is my viewpoint that many foreclosures are the result of non-payment of property taxes and all over this county property taxes payments have been pushed forward and grace periods to pay them have been shortened -It is also my view that high property taxes are a major cause of Mortgage loan default.)

Answer 5

Probably. There's a lot of distance between the ability to pay and the ability to increase payments. Eventually, all these people that took out these foolish mortgages will be in trouble.

Answer 6

If they continue to make stupid decisions like buying houses with adjustable rate morgtages, knowing they can't afford the rate when it raises. So, unless people take some responsibility for their actions and quit trying to attain things they can't afford, yes it will increase. Why, do you think the government should legislate stupidity now?

Answer 7

Absolutely - just look at all the crashing and burning sub-prime lenders out there. The statistics on homeowners who are delinquent in their mortgages are also way up - and housing prices are drifting down. Many are holding out as long as they can - but the next couple years are going to be brutal.

Article attached one of many describing the problem.

Answer 8

OH YES ! cause people bought up the real estate market , even when the price was higher than they could afford, NOW it's time to pay the piper !

americans have a bad habit of gobbling more than they can chew, literally and financially.
Fools rush in where wise men fear to tread.

One person's loss is another person's gain !

Answer 9

Yes. It is their own fault. The problem is people took loans that they could not afford.

They take teaser rates to get into the house. Within a few years, the rate skyrockets and they cannot afford it.

Answer 10

Depends on the type of interest rates they opted for. I would imagine that those who never thought that interest rates would go up along with those mortgages, many will be foreclosed. Guess that's Bush's fault too, for not giving them common sense.

BTW, the housing market was up by 16% last month.