Home Forclosures hit record high

[snoopdan 5,000+ posts]

Newly released facts for third quarter 2007 concerning home foreclosures associated with subprime / adjustable rate mortgages :
More than 635,000 foreclosure filings were reported nationwide - one for every 196 households. The filings include everything from default notices to auction sale notices to actual bank repossessions.

States in the Sun Belt and the Rust Belt continued to dominate foreclosure filings.

In the third quarter, Nevada had the highest foreclosure rate - one for every 61 households. Filings in the state rose 23 percent from the last quarter and more than tripled from the year before.

California recorded the second-highest foreclosure rate with one filing for every 88 households. Numerically, the state had the most filings with 94,772 properties, which was up 36 percent from the second quarter. That was nearly four times higher than a year ago.

Florida had the next highest total among the states, one for every 95 households. Foreclosure filings jumped to a total of 86,465, up more than 50 percent from the previous quarter and nearly doubling from last year.

Rust Belt states located in the nation's former industrial centers that made the top 10 included Michigan (one in 102), Ohio (one in 107), and Indiana (one in 196).

Foreclosures are expected to continue to increase as many of the adjustable-rate mortgages written during 2004 and 2005 reset, causing interest rates and mortgage payments to rise.

Resets could turn affordable loans into totally unaffordable ones for some borrowers, forcing them to go into default. In October, about $50 billion in ARMs reset, driving interest rates up for many borderline borrowers.

Some consumer advocates forecast more than 2 million homeowners are in danger of losing their homes over the next couple of years

How many people know someone who's defaulted or in dire chance of doing so? I wonder this because I dont know anyone personally whom is, but that doesnt go to say that its not as prevelant as the news or statistics suggest.

Click to read more...

 

[goinpro 10+ year member]

my parents have bought at least 3 foreclosures in that past couple months and "flipped" them

 

[DBfan187 5,000+ posts]

I need to goto an auction or 2.

 

[Louisiana_CRX 5,000+ posts]

I'm getting ready to build my new house next month....I'm starting on the guest house and my workshop first...I figure I'll stay in the guest house while the main house is being built...since I'm paying cash for it ...I won't have to worry with crooked banks //content.invisioncic.com/y282845/emoticons/smile.gif.1ebc41e1811405b213edfc4622c41e27.gif

 

[TylerBD12 10+ year member]

I'm in the mortgage industry so i see it alot more than i should...

 

[jdawg 5,000+ posts]

I hear what banks are doing now is when you are behind on your mortgage they actually offer you cash to move out of your house even though you are behind.

 

[Louisiana_CRX 5,000+ posts]

yeah banks are all crooked....

 

[IamDeMan 5,000+ posts]

My brother was close. Other than that I don't know anyone, but it doesn't surprise me. During the 3 year real estate boom around here, people were signing into some pretty high risk and stupid mortgages just to get a home.

 

[snoopdan 5,000+ posts]

my parents have bought at least 3 foreclosures in that past couple months and "flipped" them

too bad you have to have tons of equity in "something" to do that //content.invisioncic.com/y282845/emoticons/crap.gif.7f4dd41e3e9b23fbd170a1ee6f65cecc.gif

Im so glad I didnt buy a house in Jan of this year... it was before this whole subprime lending disaster. That old commercial "in debt up to my eyeballs" sure came full circle didnt it ? //content.invisioncic.com/y282845/emoticons/laugh.gif.48439b2acf2cfca21620f01e7f77d1e4.gif

 

[Flipx99 5,000+ posts]

The only thing that I worry about is that this is going to make it harder for people like me to get a loan.

 

[snoopdan 5,000+ posts]

The only thing that I worry about is that this is going to make it harder for people like me to get a loan.

Yeah was kinda thinkn the same thing..... In jan the bank was willing to throw a house at me even though ive defaulted on a credit card payment a few years back (allthough I paid it off, its still negative on my credit which is uber ghey).... I bet now if I walked into a reality place they'd laugh at me //content.invisioncic.com/y282845/emoticons/frown.gif.a3531fa0534503350665a1e957861287.gif

 

[TylerBD12 10+ year member]

yeah since the whole thing started the beginning of this year i really didnt think it would get this bad. I just figured sub prime loans would go out the window. which wouldnt impact me that much. In the beginning of August the Prime (A Paper) lenders have tightened up alot, which i did not expect at all. It's gotten alot harder to get good borrowers with good credit into a home.

 

[Flipx99 5,000+ posts]

I am closing in on a 775 credit score and never been late.

I don't own a home now, and don't have 20% to put down....it is going to make it tough for those who need those 80/20 loans for their first home.

 

[TylerBD12 10+ year member]

100 Percent financing is still out there. with a 775 You really shouldnt have trouble getting into a house.

 

[snoopdan 5,000+ posts]

See ive owned a home and had to sell it when I was sick, and again while I was sick I couldnt afford to pay off a credit card and it went into collection which I eventually paid off in cash. But the damage was done by that point, and credit beauru's dont give a shit about sad sob sick guy stories //content.invisioncic.com/y282845/emoticons/crap.gif.7f4dd41e3e9b23fbd170a1ee6f65cecc.gif

I think mine is around 620, which I guess it could be worse.