[cube]

$this->bbcode_second_pass_quote('MrBill', 'T')he guy was destined to lose his shirt. Even had he made money on his 7-8 houses, he would have turned around a just bought more with the profits, perhaps even increasing his leverage.

[rwwff]

$this->bbcode_second_pass_quote('cube', 'I')'ve noticed most people don't see investing as "war". (day traders are an exception ) People quite often use terms like "build wealth", "grow your money", "make your money work for you"......so naive.

[smiley]

Like most people I have a problem with big numbers. I need to play around with them to understand their meaning. In doing so I came across some things I don't understand..

The number of foreclosures will hit 2 million this year. The US has 300 million inhabitants, an average household size of 2.6 and a house ownership rate of 66%.

http://www.forbes.com/feeds/ap/2007/07/ ... 68151.html

So 2 million means:

- 3% of total sold properties will foreclose this year!!!!!
- 5.2 million or 1.7% of the total population will be directly affected by this in 2007!!!!!

That means that if you're sitting in a full bus one person will statistically be about to foreclose this year.

Now if I look at the media. I see a lot of suits whining about how their funds lost millions or billions even. But is the real story not all those millions that have to go through the foreclosure process?

I don't know how bad a foreclosure is in the US (here you're pretty much f#cked up for the rest of your life, forget about ever buying a house again). But still this would be a major human catastrophe.

Of course you can say that these people were too blame. But I think that is too simple. It's like telling the people in Kansas, "though luck you know that there are hurricanes here, shouldn't have built here".

These people took risks, but they did so encouraged by companies and institutions downplaying the risk, and they did so because the market doesn't leave them that many options.

Why is that absolute lack of media attention. Why isn't CNN crowded with poor families which have to leave their house. Is that Big biz pulling their strings because they don't want people distracted from their own financial problems. Is it because they don't want people to see what happens if you take the risk and get it wrong?

Any idea's

[Roccland]

Call 911, Foreclosures Are Up

May want to think about getting one of these nightstands...

[dutchcyclist]

A lot of people have second homes, on wich they will foreclose first

[smiley]

$this->bbcode_second_pass_quote('', 'A') lot of people have second homes, on wich they will foreclose first

[gnm]

$this->bbcode_second_pass_quote('smiley', 'O')f course you can say that these people were too blame. But I think that is too simple. It's like telling the people in Kansas, "though luck you know that there are hurricanes here, shouldn't have built here".

[Jack]

$this->bbcode_second_pass_quote('smiley', 'I') don't get it. Why would you foreclose on a second home? You would sell it before it came to that wouldn't you?

[Polemic]

$this->bbcode_second_pass_quote('Jack', '
')Unless...unless the assumptions are wrong, and the default rate among poor credit risks exceeds expectations. Then the lender loses a great deal.

[Jack]

$this->bbcode_second_pass_quote('Polemic', '')$this->bbcode_second_pass_quote('Jack', '
')Unless...unless the assumptions are wrong, and the default rate among poor credit risks exceeds expectations. Then the lender loses a great deal.

[Eli]

Well, here at least the home it self is held in collateral for the home loan. The bank can't sue and take your wages they can only get your house.

They used to have a way to discourage people from just walking away from their house if they got into financial trouble. This incentive to stay was called a "down payment". Because of this go go housing boom banks thought they could stop taking "down payments", real estate only goes up you know.

The banks messed up and abandon all financial reason.

If I was some renter/home owner in California and I had a 100% financed loan I would pack my bags and go rent some where else. Screw the banks, take my house and may you choke on it.

The mistake people are going to make is that they are going try and stay in their homes because they are emotionally invested but it will not make financial sense to do so.

Seriously if anyone finds them self in this position don't run up your credit card trying to pay the light bill and the mortgage. Get up and walk out. IF the deed is not fully in your name free and clear, you are really just renting to own from the bank. Same goes with cars.

[What2DO]

Most if not all of the foreclosures right now are ARM, people were stupid enough to get into a house that they could never afford because of either no down payment and very very low interest rates, but the catch was in a few years when their ARM was up the rates would be very high so they went from a $1000 dollar a month house payment to a $3000 dollar a month payment. Im sure alot of them thought they could either flip the house and make some money while others thought they would be able to switch over to a 15 or 30 years fix. Well guess what they could'nt. This is the mess we're in now and of course this will spill over into the stock market which we are seeing now there will be some more bad before good but i believe it won't be doom. Its thier own fault for being so damn stupid and we are all going to pay for it, one way or another.

[Cloud9]

A good case study is a little girl I know. She was in law school. Here mother was a realtor living on the coast here in Florida. The flipping of houses on the coast had gotten to be insane. The little girl’s mother talked her into buying a two bedroom one bath home for $400,000 right off the beach. Based on what the market had done, she would live in the house for two years while she went to law school. Then she would sell it and make enough money to pay off her student loans. Because she was a student and had no income, she went into an ARM. She graduated this summer. She landed a job making twice my salary. The bottom fell out of the market. Every house on her street is for sale. She is drowning in debt and does not have two nickels to rub together. Every penny she can scrape together goes to servicing her debt. Her ARM adjusts next summer. She is neither stupid nor greedy. She operated on bad advice. Unless a miracle happens, she will lose here house and her credit next summer.

[Pretorian]

well house is not hers to lose; as for a creditscore, there are about 6 billion people or more on earth who have never heard of it and they can live without it , believe it or not. If I was that girl I'd open all creditcards I could right now.

[Eli]

Cloud9 if you are in any way close to this girl you need to tell her to walk away from that house.

Let the Bank have it. With the new BK laws if she lets this house take her down she will have to pay on it, and the IRS will get to set how much money she lives on. She needs to avoid BK at all costs because it will put her on the hook to her debtors.

Her credit will be ruined either way but a law degree and a high paying job is all she will need. The Banks are going to choke on all the foreclosures, she could default rent for a year and come back and by the same house for 200,000.

[Tyler_JC]

Not sure if anyone's mentioned this yet, but the borrower is liable for every penny printed on the IOU, unless he/she declares bankruptcy.

In the United States, a mortgage is a promissory note. It is backed up by both the value of the property AND the ability of the borrower to pay.

It is certainly possible to sell a house and still owe part of a mortgage even though the house is no longer yours.

[Tyler_JC]

$this->bbcode_second_pass_quote('Pretorian', 'w')ell house is not hers to lose; as for a creditscore, there are about 6 billion people or more on earth who have never heard of it and they can live without it , believe it or not. If I was that girl I'd open all creditcards I could right now.

[I_Like_Plants]

$this->bbcode_second_pass_quote('Tyler_JC', '
')Sure, if you want to live like a South American peasant.

But for those of us in the industrialized world, a credit score is a major factor in your quality of life.

Want an apartment? You need good credit.

Want an auto loan, credit card, mortgage, or even a consumer loan for a sofa? You need good credit .

Want a job? Your credit score has to be at a certain level in order to even be considered employable.

[Eli]

Revelation 6:5

When the Lamb opened the third seal, I heard the third living creature say, "Come!" I looked, and there before me was a black horse! Its rider was holding a pair of scales in his hand. 6Then I heard what sounded like a voice among the four living creatures, saying, "A quart of wheat for a day's wages, and three quarts of barley for a day's wages, and do not damage the oil and the wine!"

[Pretorian]

$this->bbcode_second_pass_quote('Tyler_JC', '')$this->bbcode_second_pass_quote('Pretorian', 'w')ell house is not hers to lose; as for a creditscore, there are about 6 billion people or more on earth who have never heard of it and they can live without it , believe it or not. If I was that girl I'd open all creditcards I could right now.