Why are we having so many foreclosures in america?

Question

is this related to any of the following:

outsourcing of jobs overseas, illegals influx, HB1 visa imports from india, high gas prices, etc....????

just wondering. Please be as detailed as possible.

thank you

Answer 1

You could actually call this a depression! Balloon Intrest payments on homes with low down payments is one cause. There are too many jobs that don't pay what the cost of living really is. Unemployment rates are just as bad as the great depression of the 1930's. Besides that, the Global economy and all of the tricks that come with it are designed to put you on a playing field that matches the countries around us. This new trade agreement or SPP/NAU sells Americans and American values out.

You may want to check out The Emergency Banking Act, March 9, 1933, 48,STAT.1, Public Law 89-719. It's an eye opener for those who don't know...

Answer 2

Predatory lending habits. Ok, here's the shortest possible explanation.

1.) Housing Markets naturally rise and fall

2.) As a result, most lenders demand 20% down in order to cover a bad dip in housing prices

3.) In the last ten years more and more lenders have been giving 90, 95, and even 100 &103% LTV (Loan to Value) loans.

4.) This means that if the house price dips hard then home "owners" owe more on their house then it's actually work.

5.) Foreclosure.

Answer 3

From what I'm seeing, and I'm not an expert in the housing market, is many lenders are lending more money than people can afford to pay. For instance, where I live the housing prices skyrocketed after it was placed in a "top places to live" article in a magazine. Because of that people wanted to move into our area, asking prices for houses skyrocketed past the point where their were substainable jobs to pay for them, and now people are loosing their houses.

So, I can't say for sure that's where all the problems are. But, from my experience it's not because of job outsourcing or stuff like that. It's people wanting top dollar for houses in areas that don't have the jobs to support that kind of mortgage and lenders still lending people money. Now if the owners of the houses had sold the houses for a little over what they paid for it, instead of asking 20 or 30k more the area I'm in would've been fine.

Answer 4

Not really, The reason we are having so many foreclosures in America is that for the last few years banks have gotten creative with their financing - and for many reasons - have offered loans to people that they were not qualified for; loans that were sub-prime rates, loans that were not fixed but could rise, and rise they did. The payment rates rose higher than the person can pay, so they are now in foreclosure. Of course there are more complicated reasons for these loans, but basically, the payments went up and the people cannot pay.

Answer 5

No, it all has to do with people not being able to handle their money.

We live in an age where you can have a zero money down payment on a house. The banks are just encouraging debt as much as they can because then they make a killing on interest... the banks are gettin more cut throat... but that's pretty iffy because banks sure don't make alot after a foreclosure.

It's all about debt. People are stupid with their money and they can't handle debt.

Answer 6

It is because the avergae income of the location doesn't fit the housing costs so people think even though they may not make enough that they can try to afford and keep up with the house and cannot.

It's mostly over pricing homes and greed with no consideration to the average income of families in that city.

Answer 7

it's a number of factors, that do not include anything you listed in my opinion. The biggest factor is that people simply do not know what they are doing. A couple years ago everyone wanted to be Donald Trump buying second or third properties (at least down here), with 40 year (and up) mortgages with variable interest rates. Now that rates have gone up, as well as property taxes (which will always go up), people can't keep up with their payments, and have to foreclose. I think lenders have been way to lenient, and some could even say unscrupulous by giving out 'sub prime' loans to people with bad credit. Those with bad credit have it because they made irresponsible financial choices and often times are not ready for the responsibility of a mortgage..let alone 2 or 3 of them. (it sounds rediculous but I have a friend who is swimming in 3 mortgages. He is paying his mortgage with credit cards and his credit cards with loans.)

Also, many people think the best way to get out of their (stupid decision to get a) variable interest rate is to refinance. While that can be a solution many people fall prey to inflated appraisals. For example if you want to consolidate and refinance to get lower monthly payments your home must be appraised at a rate higher than what your consolidating. There are many fraudulent appraisers out there who are more than willing to give a false appraisal for an extra buck. (thus screwing you even further)

Answer 8

nicely i don't think of such statistics are saved yet as quickly as we assume, conservatively, that a million in 6 people are declared atheists, (especially plenty shown with the help of polling) and according to probability yet another a million in 6 secretly so (for worry of retribution), then it is hassle-free to could desire to assert that in the process all probability 2 in 6 belongings proprietors are the two atheist or very strongly agnostic. additionally, little doubt yet another a million in 6 in all probability would not have self belief in the Bible actually in any respect, yet does have self belief that thought in faith is significant and makes use of church-going as a social and community community. So enable's say 50% are the two atheist, agnostic or non-believers (dogmatically I propose).

Answer 9

i'm not really sure other than the boom has to slow down eventually. where i live the housing market is dropping off drastically but the commercial market is booming better than ever. i live in one of the fastest growing counties in georgia and the commercial market is just catching up. now, i will tell you that is you look at the stock market obviously people aren't hurting too bad because they are sure still spending like crazy.

Answer 10

I would put spending more money than you make up there on the list.