Rise of foreclosures on homes...

Yup forclosers are on the rise. Also, to make things worse, since the bankruptcy laws changed you can not bankrupt the debt very easily anymore. You can only get protection from the debt for a time period and then you get put on a payment plan to repay the debt. Basically the banks over extend you and force you into foreclosure and bankruptcy and then wait it out until they get paid.

Wow i didn't know this!
Interesting isn't it?? I agree that banks are WAY over extending people and that's the reason, one of them anyway, that so many people are foreclosing! (and living beyond their means is another reason) We had a doctor no less, a doctor! Who bought a house from my boss, he told me he had gotten a smart loan, so i was like what is a smart loan?? Ummm... it's a loan with NO principal! That doesn't seem very SMART to me!! YIKES!
:O
Ang

I could be the poster child for that whole situation guys....what DollarsandSince described is EXACTLY what happened to me...with a few twists thrown in. I am seriously contemplating contacting a lawyer to see if I can sue the broker & the real estate agent (who owned the house he sold me AND worked for the broker at the time). They have put me in the poor house, almost literally. I was forced to file Ch. 13 to save the house, because I had no where else to go if I lost it.

Good thing the doctor is not a doctor of finance because those interest only loans are one of the dumbest loans you could ever get. In theory they work great assuming your house appreciates quickly but most homes only appreciate 4% per year at best. Couple that with the fact that most of these loans are done on an ARM with the rates moving upward and now you have an upside down loan on your one home. To make matters worse these things were pushed like crazy in markets that bubbled and have popped and now you have a outstanding balance that is higher than the value of the home from 2 different factors. If you are going to get a home loan get a fixed rate conventional loan on a 15 yr with 20% down if you can swing it. Deffintely dont go over a 30year with less than 5% down. Stay away from ARMs because rates are really low right now and trending upward.

Very good advice Dollars! I'm not going anywhere, my house will be paid for in 2 years and finally will be debt free by that time! Can hardly wait! We did a 15 year fixed and at the time it seemed like wow how are we EVER gonna pay this note... but we did and now it's almost funny at how small our note truly is!
And for some reason, in our area the market is booming! Well it's from the hurricane's... but my house has tripled in value from 15 short years ago! But i'm NOT complaining! lol
:D
Ang

I envy you Ang. I still owe about 80%. I have only been in my house about a year.

Well Dollars ull be there before u know it! Times goes by fast, especially when ur having fun! ha ha
But seriously time does fly by... and i'm NOT about to move, i'm staying put for the rest of my life!
:D
Ang