Why is everyone on my street selling their house?

Question

all of my friends are moving out! and everybody is selling their cars too?? what is going on? and down the street from there are foreclosure auction notices littering the street everywhere?
did we get invaded?

Answer 1

No we didn't get invaded, but we did see a major collapse of the Sub-prime lenders market.

How might this be affecting people around you? If they had an Adjustable Rate Mortgage (referred to as an ARM) instead of a Fixed Mortgage (which is what you have, right?) they've seen skyrocketing prices for their monthly mortgage payments over the last 8 months. Many people can no longer afford to pay their mortgages.

How to protect yourself? If you're in an ARM, get out of it now!!! Same with Interest only Loans and Neg-Am loans. Go for a Fixed Mortgage of 30 years or more. I'd suggest getting a 50 yr and then paying more each month than the minimum amount required. You'll see your principal plummet!

Answer 2

I don't know your neighborhood to answer specifically, but the foreclosure rate is way UP right now! Last July in FL in my county is was 3 homes in 2006 and 2007 is 17 homes. Big jump! A lot of people borrowed too much on the house & can't afford it and they can't sell it high enough to get their money back out of it. It's a scary place for some, loosing money. But if you are doing ok financially, don't sell. Wait a few years till the market comes back. It's cyclical. Each cycle ranges about 5 years from top to bottom then it starts all over again. History always repeats itself, right?

Answer 3

I skimmed through everyone else's response.... if you really want to know how to get them to move it.... Only way I can think of is to offer to pay for marina fees or storage fees... Go down (or up) the street and ask your neighbor if they are planning on taking the boat out on the weekend.... Say "Hey you taking your boat out for a spin on the lake?" When greeted by a hearty "No!" simply slip into the conversation and strike a deal. Offer to house the boat in a secure location free of charge... Explain that potential buyers may seem less reluctant to buy your property if they see a large boat that would restrict movement in your already cramped environment. On a side note just get them to make the decision for themselves. If not I might know a few crackheads that could take it out on the weekend of your open house.... no boat no problem..... but having police there wouldn't look any more appealing. I say deal with it or forget it... If your prospective buyers sense that you have a problem with the neighbors it could sour a potential buyer into looking elsewhere.... Good Luck and don't do anything illegal. It was merely a sad attempt at witty sarcasm.

Answer 4

I'd go to your local city's website and find out if there is any large construction projects about to happen that could lower the value of your home. If there isn't anything that looks like it could affect you, it could just be that people are riding on the coattails of the house prices being so high...

But I agree with a previous poster, if you don't have to sell, and the property value isn't going to drop, then don't sell, and don't move. You end up losing money in legal fees, pre-payment penalties and all of that fun stuff

Answer 5

Hang in there, it will get better. For those of your neighbors that really don't have to sell, well... they are going to lose. Most buyers today are making such low ball offers, it breaks my heart to see how much equity people of losing. So if you don't have to move, don't!

So what is going on, everyone is afraid they will lose their homes if they don't sell. Instead of maybe taking a second job to keep up for awhile and maybe contacting their lender for help. It's like deer in headlights! They all freeze instead of taking preventive actions.

Answer 6

What city/state are you in? I see people selling, but nothing like that...

Answer 7

very interesting question

Answer 8

Do you shower?