Forum Home | Login

terpfan1980

Join Date 08/2004

+13

Must be Bush and GOP's fault--More Americans losing homes

... to foreclosures

Blunting the sure to be idiotic posting(s) that will come from the Bush bashers that will be trumpeting the (good for them, but) bad (for everyone else) news:

More Americans are losing their homes to foreclosures. There's been an "alarming" (main stream media's choice of words, not mine) increase in the number of foreclosures recently as the risky loans that some people were signing up for are catching up to them and people are finding that they can't afford the homes they were buying.

Perhaps this is more a sign that people that were speculating in the real estate market are finding their bets called in the tradition of the stock market option calls, and not really a sign that the Bush administration and the GOP in general are responsible for more people losing than the homes, but that won't stop many of the bashers from trying to say otherwise. They've already pointed at apparent control of the weather and natural disasters by Bush and the neocons as reasons for the loss of so many homes and so much devestation in New Orleans, the rest of Louisiana, Mississippi, Texas and elsewhere, and they are certain that Bush hates black people and is to fault for it all -- every bad thing that could possibly be imagined, so why let the truth get in the way over this issue?

While I do feel sorry for people that are caught up in the housing market that does seem to finally be coming back down to earth, much like the stock market of the late 1990s, trumpeted so gloriously by some moronic individuals that believe that all things Clintonian were so fine and good for everyone, things got way ahead of themselves. Just as the over-blown stock market saw it's bubble not just burst, but blown away leaving a big wake of destruction behind, the housing market seems to be following the trend. People speculated, gambled, and some were burnt badly.

There are many innocent people that were hurt along the way, including employees of companies that saw the value of their employees disappear almost over night, and now there are innocent home owners that are seeing the markets for the properties they are holding vaporizing too. But along with those innocent home owners are a bunch of speculators, gamblers if you will, that had jumped out of the stock market over to the sure thing: the real estate game.

There in is the real problem for all. The people that treat the pursuit of wealth as a game. Rather than looking at housing as a necessity, many considered it a game where the object was to constantly keep upgrading and getting bigger and better. A constant contest to get something better than the neighbors had, to get more money for the sales of their properties than their neighbors did, and then turn that money over to get an even bigger home or property that would also be flipped within a short period of time.

Somewhere, somehow, and sometime, people will learn that there is no easy way to free money. Slow and steady almost always wins the race. Those that cut corners and look for shortcuts generally find their money gone before they really get to spend it, and that is now happening to many in the real estate market. Sadly, it will, as with the stock market before, take down many innocents along the way. Hopefully those folks will find that the experience of the newly reformed bankruptcy laws isn't too tough an experience.

Original article snippet follows. Please click on headline to see original materials to read entire original materials.

More Americans are losing their homes

Risky borrowing is catching up with a number of homeowners across the U.S. Foreclosures rose 45% in January compared to a year ago, and experts only expect the pace to accelerate.

By Melinda Fulmer

The number of homes entering some stage of foreclosure -- from notice of default to bank ownership -- increased 45% in January from the same period a year earlier, according to Irvine, Calif.-based RealtyTrac. That was one new foreclosure for every 1,117 U.S. households.
The number of foreclosures is still low on a historical basis, but it has been rising steadily over the past year, RealtyTrac reported. Job losses in some regions were to blame, but so, too, were risky borrowing practices that left homeowners little wiggle room on their mortgage payments. And with the pace of appreciation stalling and interest rates rising, many economists and industry observers expect the pace of foreclosures to accelerate this year.

... more at linked article

politics

Locked Post

Advanced Search

Watch this post

Do not email me updates for this post Email me updates for this post

Successfully updated karma reason!

Whew, now that I got rid of the duplicate copies of the article (sorry, was a JU hiccup saying article couldn't be found immediately after posting), here's the forum bumpage on the *

copy of the article

Successfully updated karma reason!

I figured this would start to happen. During the boom, I saw developments going up "starting in the Mid 600s" etc. Now I dont doubt that there are some who can afford houses like that, but when there is development after development like that? At least not for this area. But how where they doing it? A co-worker bought a house at the beginning of the boom for "no money down". SO I am sure a lot of people did that. It is not that they cannot afford them (or perhaps they never could), but just they have nothing invested in them, and so walking away costs them relatively nothing.

They bought in the hopes of flipping. But you cant flip in a stable market. It does not pay.

Successfully updated karma reason!

There in is the real problem for all. The people that treat the pursuit of wealth as a game. Rather than looking at housing as a necessity, many considered it a game where the object was to constantly keep upgrading and getting bigger and better. A constant contest to get something better than the neighbors had, to get more money for the sales of their properties than their neighbors did, and then turn that money over to get an even bigger home or property that would also be flipped within a short period of time.

And to think they based a show on it called Flip This House. It seems like a good idea, but I have always believed that easy money is not always a good idea. Just look at the drug industry. I can't see why this would be anyone else's fault except the homeowners who should have done their homework before buying a house. That's just the problem in the US, too much ignorance when making big decisions in life like buying a house. If people only understood what they are really getting into and how things change from day to day when it comes to loans, mortgages and the stock market.

People believe that education beyond High School is only for those with careers and high paying jobs. But they can also be beneficial for everyday life after work. I have always said that things like economy and the value of a dollar should be part of, at least, high school education. To help our children get an understanding of how money works when it's their turn to work for it. I know parents are parcially responsible for teaching their children the value of a dollar these days, but professional educations at an early age would, I think, be very beneficial to them in the future. Just my opinion.

Successfully updated karma reason!

The real danger is that more and more families are further in debt. Credit card debt, car loans and mortgages that have been designed to fit the ability to meet the monthly payments at the time the mortgage begins. However, with real wage growth for middle income family’s stagnant and increased energy, food and medical costs, it is no wonder that foreclosures are up. The American family like the U S Government has turned more and more to debt rather then paying for things as they go. There is nothing wrong with sensible mortgages but with the more radical mortgages along with other debt, the average family is in more financial trouble then in the past.

Successfully updated karma reason!

typical of people in times of great surplus to overspend and get into trouble.

But I am sure somehow someway this will be the first time in recorded history that this haas happened ande of course 'IT'S ALL BUSHES FAULT!!!!!!!!!!!!!

Successfully updated karma reason!

Gene, you actually get a +1 for that statement. It was, in the words of Fred Gwinn in the movie My Cousin Vinny, lucid, etc....

Seriously, neither the U.S. government, or it's citizen taxpayers should be over-extending themselves, and truthfully both have. In the case of the U.S. (federal) government, sometimes they do have to borrow and over-extend to cover all of the necessities, though there are still lots of non-necessities that the Congress wastes our monies on.

In the case of most U.S. taxpayers, the rush to get more toys and more wealth in a big race against everyone else is just stupid, and yet many get mesmerized at the $$$ (dollar signs) and let themselves lose all sense of reality in buying bigger and bigger. Something that many that bought these houses didn't think about when hearing the words from the realtors, bankers and financiers that were helping them 'get into the homes of their dreams' was that all of those people had profit motives to help the poor end buyer (or seller) and none were really ever looking out for the bottom line best interests of the people buying the homes.

Just because someone tells you that you can afford a big home, doesn't mean you should buy it. The same with luxury automobiles, SUVs, TV sets, and anything else you can possibly buy on credit. Just because you can get the money today with the promise of paying it back tomorrow doesn't mean you shouldn't keep saving a little longer to get it without borrowing.

Successfully updated karma reason!

Join Date 03/2001

+23

Yeah. It wasn't people's irresponsibility that caused that to happen. It's ALL Bush's fault!

It's really just a case of people trying to get fast money and blowing up in their faces. It's business risk. When you gamble, you risk your money.

Successfully updated karma reason!

I would be willing to bet if the numbers were researched, you'll find the vast majority of the foreclosures are in the "1st time buyer" catagory.

I'd further wager that those numbers are over represented by minorities and socio-economically challenged individuals.

The low interest rates made high credit risk loans profitable, and not just in the housing market. Default rates are soaring in the Auto Finance arena as well.

You could even bring in the question of cultural apptitude, and if these previously reppressed groups were capable of truly understanding the committments they were contractually entering.
Previous generations had only experienced limited credit availability, never experienced the nuances of home ownership, and have had little more than tennant/landlord relationships to base their knowledge upon.....

Some cultures have just not advanced to the state of personal responsibility, just look at the lines at Social Svcs, Unemployment, and Social Security, and then look at the cars in the parking lot...............

Successfully updated karma reason!

Gene, here in America we are free to take risks.

We are free to accumulate wealth, and then wager that wealth on the potential to accumulate even more wealth in the future.

This is a fundamental freedom, derived directly from our inalienable human rights to life, liberty, and the pursuit of happiness.

Of course, sometimes these wagers lose instead of win, and the free people who risked their wealth must accept the consequences of taking that risk.

Just as they're free to keep and enjoy whatever additional wealth they get when the gamble pays off, they're also free to pay the cost and suffer the consequences whenever the gamble doesn't pay off. I don't see how it could possibly be the government's fault.

Who am I to judge these free and private citizens? If they felt it was worthwhile to risk their finances in this way, that's their business, not mine or the government's. If they thought they were sufficiently covered in case of economic disaster, that's their business. And if they thought wrong, guessed wrong, planned wrong, prepared wrong? That's still their business. Not mine. Not the government's.

That's the whole beauty of a free society: we're all free to conduct our own business, according to our own best judgement; and we're all free to deal with the results of that, good or bad, personally.

Successfully updated karma reason!

Wow, good post on #4 there Col.

The problem is we have reached the point that people are willing to flop down their visa card and pay interest on GROCERIES. Inflation is supposedly hard on us at a tiny percent, but we ignore giving 10-20% of our income away because we finance every damn thing we buy.

It isn't hard to see why people are losing their homes. There are ditek commercials on every 20 minutes 24/7. It seems to be commonplace to have a couple of mortgages on your house. People have no problem paying for cars for 5 years, then immediately turning them back in and starting the interest all over again with a new one.

Not me. I refuse to finance anything. If I can't buy it outright, I don't buy it anymore. I understand people needing a loan to buy their car and their house, but outside of that every percent you pay on interest is thrown away.

Successfully updated karma reason!

Not me. I refuse to finance anything. If I can't buy it outright, I don't buy it anymore. I understand people needing a loan to buy their car and their house, but outside of that every percent you pay on interest is thrown away.

Made especially worse thanks to the tax reforms some years back that eliminated the deductions on (most) credit card interest.

If mortgage interest ever is eliminated as a deduction, then all bets are off on how screwed up the financial markets will get in this country, but perhaps then what BakerStreet aludes to will come to pass -- a gradual cessation by many of the "I'll gladly pay you Tuesday for the hamburger today" mentality that far too many have grown up with.

I admit it's pretty darn silly to see credit cards used for groceries. I use my debit card daily, or almost daily, to get StarBucks, but it's a debit card. The money comes out of my checking account, it's not a credit card, and I'm not paying interest on my purchases forever... One of the things that keeps me using the debit card is that I get Visa Extras for doing it, but again, I'm not using it as a credit card. If I was, I'd certainly be wasting my money many times over. (Bad enough to overpay for coffee, but why really overpay, and then pay interest on the purchase!)

Successfully updated karma reason!

The problem is we have reached the point that people are willing to flop down their visa card and pay interest on GROCERIES

That is very true. And dangerous. But for me, it is a godsend! I use my cards for everything (not debit as I always forget to put them in the book). But the credit cards! I pay them off every month, and let them do the accounting! SO for me it is great. I write about 8 checks a month, and the rest the CC companies do for me.

But for the weak willed (like my ex), it is a narcotic worse than heroine!

Successfully updated karma reason!

If mortgage interest ever is eliminated as a deduction, then all bets are off on how screwed up the financial markets will get in this country

If Abortion is ever eliminated.....

Different topics, but same likelyhood. It wont happen. Home ownership is too American. More so than in any other country in the world.

Successfully updated karma reason!

It wont happen. Home ownership is too American. More so than in any other country in the world.

Don't be so sure Guy, it's a possibility, depending on what happens with future tax simplification. Of course there'd be trade-offs of some sort made, but it's possible that the mortgage interest deduction may be eliminated, or at least reduced or capped in some ways that would mean that the federal government (meaning all of us poor tax-payers) isn't picking up the tab for all of the costs of these big homes and properties.

While it's nice that the government encourages home ownership, it's not like home ownership would dry up if the deduction wasn't there. It would be more difficult, but not impossible. It would also seriously encourage buyers to think hard about buying what they can afford, rather than buying bigger than they can afford or currently need.

It might slow things down for a good while, but eventually the free market would get moving again.

By what I've read on potential reform plans, the mortgage interest deduction is an area being looked at. Again, it might never happen, but I think chances are better than some might want to admit that eventually something will happen, for a host of reasons, including the idea that eliminating or reducing the deduction would bring in more revenue for the feds (Congress) to spend.

Successfully updated karma reason!

Don't be so sure Guy, it's a possibility

Anything is a possibility, you are right. But the probability is slim and none. The Housing industry itself is the strongest special interest group in this country, far surpassing even AARP. And you have seen how hard it is to get any reform done on SS with that special interest. I have been involved with the Housing industry, both as a participant, and observer all of my life. I have seen no weakening, indeed only a strengthening in my years of working and observing.

Successfully updated karma reason!

Welcome Guest! Please take the time to register with us.

There are many great features available to you once you register, including:

Richer content, access to many features that are disabled for guests like commenting and posting on the forums.
Access to a great community, with a massive database of many, many areas of interest.
Access to contests & subscription offers like exclusive emails.
It's simple, and FREE!

View all recent posts

Mark all posts as read Delete cookies created by the forum Return to Top

Stardock Forums v Server Load Time: Page Render Time: