After reading and hearing about the foreclosure issues facing lenders and homeowners alike lately, I’ve come to the conclusion that there are some misconceptions out there. I’d like to say a few words . . .
While it is true that many of those properties in foreclosure are owned by folks who bit off more than they could chew, there are a good number of properties owned by honest, hard working people that have hit hard times. I hate that some people think that *only* people who bought with zero down at high prices and bought more than they could truly afford are the ones in foreclosure. Simply not true.
Case in point: I have a friend I’ve known for literally most of my life who bought a house about 20 years ago and has until the past year, had an excellent job. She’s paid her mortgage faithfully for those 20 years and refinanced a couple of years ago to pay off her student loans.
Last year, she lost her job when she had to go back to school to update her degree. Her former employer promised to re-hire after she finished and to date, they have not.
Now, please don’t tell me it’s only dumb idiots who are facing foreclosure or that just because a person *is* facing foreclosure, they must be a dumb idiot who bought more than they could financially handle and they deserve to lose their home. That totally pisses me off, quite frankly.
Homeowners do deserve some form of help and I certainly hope they are allowed some.
~ Annie
More like this . . .
High-end homes selling better? by Annie on July 29th, 2008
Real Estate Local: Tanked by Annie on March 17th, 2008
Seattle Experiences 16-year High for Unsold Homes by Annie on August 29th, 2007
Thoughts: Sub-Prime Meltdown by Annie on February 3rd, 2008
Countrywide under investigation by the FBI for securities fraud by Annie on March 10th, 2008
March 31st, 2008 at 7:14 pm
It is unfortunate that this happened to a friend of yours. However, if this were the standard story, there would not be a crisis. The crisis was created because a bunch of Mortgage Brokers decided to take advantage of a bunch of lenders (most likely investment banks or investor groups of sorts,)with lots of money and no brains. We can go on and on with the details. But basically, these lenders were the ones who got duped.
Your friend isn’t stupid or dump, just a little unlucky. Fortunately for her, the crisis has made property affordable for her if she now has a job. Talk to a legitemate Mortgage Broker and see what he/she can do. Creative financing was designed to help people like your friend.
Depending on your area, she should be able to buy for approximately what she is paying in rent. Attend a Foreclosure Auction in your area. Take advantage of the Industry Professionals. Make sure they understand what your friend (or if you want to buy) want. Alot of the Agents and Mortgage Brokers were trying to get people to buy the maximum they qualified for. When someone tries that on her… have her run.
Talk to a few Mortgage Brokers and Realestate Agents.
Good Luck if she wants to buy or doesn’t. Nothings for sure, but its worth a shot.
She should do what makes her happy… as long as it isn’t self destructive.
March 31st, 2008 at 9:07 pm
Hi LJ,
Thanks for stopping by. True - it isn’t a standard situation. I realize that. I merely wanted to point out to some who assume that ALL people facing foreclosure in the current market ARE those “with lots of money and no brains” as you put it and that the looming foreclosure of their properties serves them right. I find it irritating.
Thanks for the thoughts. Your kind reply is much appreciated.
~ Annie