A study out today from the Center for Responsible Lending predicts that subprime borrowers are going to lose their homes to foreclosure on a massive scale. Looking at more than 6 million subprime mortgage loans issued from 1998 through September of this year, the study calculates that 2.2 million households have either already been foreclosed on or will be foreclosed on in the next few years.
These foreclosures, it says, will cost homeowners around $160 billion in wealth, mainly in the form of lost equity. The foreclosure rate will be highest on homes that were sold at the peak of the market, it says, because prices on those homes have fallen, meaning people will have a harder time bailing out of distressed loans by refinancing or selling their homes for a profit.
6 comments:
Blogger: what's with the preoccupation with the real estate market? The market goes up, the market goes down, people make money and they lose it. My advice: don't buy something you can't afford and don't spend money you don't have. That's why all us intelligent folk are living in Parkridge and not in some new million dollar house mortgaged up to our eyeballs.
If your question is not rhetorical, we are a "home owners association" so the content seems appropriate to me. Feel free to submit content as a comment, I'll convert it to a post and let our neighbors tell you what they think. Otherwise, delete this web address from your favorites and do a Google search for a topic that interests you. Your Blogger
No need to jump to the defensive, I wasn't being critical. I'm just tired of people freaking out about the market...when it was streaking up everyone was so giddy they were practically peeing their pants and now that it's slowing/going down people are all gloom and doom. I say convert the hysterical energy to something practical, like keeping our neighborhood nice (picking up trash, taking the initiative to sweep out the laundry room when it's filthy, straightening the pool furniture, taking an active role in the voting/election of our board, etc) so even if the market goes down we homeowners can still be confident in our investment.
Mr.Blogger the female anonymous person realy likes the new HOA she's always defending herself and attaking others.I have to say that.I like Miss. Kelly for being part of the HOA and,help in many ways to our community.I have make friends here and,I know we offer to help when it's needed.Thank you very much for posting this site.I'm pleased with information comming from everybody else. Please excuse my poor english skills.I'm mexican after all. GOLDA NORTON IN #126
The Press Democrat reports from California. “Bring in a buyer for an Oakmont home and get a $5,000 bonus. Buy a fixed-up two-bedroom Santa Rosa house and drive away in a new Honda Civic. Close a deal in a Christopherson Homes subdivision and win a trip to Hawaii.”
“Incentives to drive home sales have become more common across Sonoma County during the housing slump. Most are aimed at enticing agents, in a market where the supply has doubled over the past year. ‘You pull up a price range and you get more houses than you can look at. You somehow want to do something to get noticed,’ said Tom Kemper, property manager in Windsor. ‘Houses don’t sell themselves any more.’”
“A new Honda Civic for a $359,000 house, that was an offer posted in red letters on a large yellow banner at a busy Santa Rosa intersection. ‘With the market as it has been, I thought it might be valuable to get a hook,’ said David Peoples, the agent with that listing. ‘I’m thinking anyone can lower the price, but let’s do something that will draw attention, and it did.’”
“More than a month later, despite more calls and interest, the lure of a new, $20,000 car still had not yielded an offer to purchase the house. ‘It didn’t sell the house, but it did get a lot of attention. It achieved that goal,’ Peoples said.”
“Since then, Peoples dropped the car offer and the sellers lowered the price to $339,000.”
When a lender fails to find a homeowner to notify them of a foreclosure lawsuit, a judge often appoints a guardian ad litem. That attorney is supposed to represent the property owner's interests. These will of great help to those whose properties are foreclosed.
gainesville foreclosure attorney
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