(Definition) Fore-clo-sure : Discussion Please
in the late evening on Wednesday, the 16th of July 2008 by Tina
It is impossible to miss all the talk about foreclosures. All the talk about the government SAVING people who have FALLEN into foreclosure, and all the stories and woes of those who are in this situation.
Let’s talk…
One story I just read was basically about an abusive man, in a failed marriage, who ended up killing his 2 small children. Oh and of course the main topic of the story was his foreclosure… it was later noted his multiple arrests for beating his wife. He “bought” the house in November 2007, it was foreclosed on in April.. yes April! paid on it … $500. How on earth does someone even get a mortgage if in the span of 6 months he has paid $500??? You can not even rent a place that cheap… this man would not even be able to rent a freaking slum for that! My 1st apartment back in the 1980s in a crappy apartment in Baltimore was more than that. Plus gee there are going to be other features like heating, water.. blah, blah… so how does a person get a freaking mortgage if they can not pay barely a spec of it?
This is where I am utterly perplexed!
I read on, more articles.. and hear of the extensions and payment arrangements that lenders make to try and help these poor souls. They are given every, freaking chance and then some.. and still people want the government to bail them out????
Another story… Virginia… they are showing the sheriff has to go to peoples homes to lead them out, due to foreclosure. Ok this should not be a shock to the person, why are they filling the moving truck the day the sheriff arrives? Why was it not filled, I dunno a month, two months or more ago? They knew about the foreclosure, did not happen via a phone call that morning! These people know more months they are not paying, they know for months they have a chance to try to fix things. If they can not fix it they know they have to go… so why are they waiting for the sheriff to walk them out, change the locks, etc?
I am utterly baffled!
There is nothing on earth wrong with renting a home, and there is definitely nothing wrong with buying a home for less than that maximum you can afford (in fact that is a GOOD idea!). But what shocks me is when I see that story where the guy paid all of $500 in 6 months! Seriously.. how on earth did that happen? I am certainly hoping that is just a really, really, really odd case… I realize that most people surely go into the intention of buying a home that they can afford. But too many people have eyes wider than their wallet, and buy way over and beyond what they can afford…. what sense does that make, who is guiding these people?
Shamefully,we had realtors who lived behind us, who were going through foreclosure, they thankfully nabbed a buyer at literally that final second… at least it is under contract now. Now what bugs me, more than their foreclosure potential, was that they are realtors. realtors are supposed to be there to help the buyer make the best choice… to not buy above their grasp. the realtor should always have a mortgage person available to make sure the buyer is within reason, and understands their choices. If they do not… wa-la the current crisis is the result.
Yes, I am pointing blame at realtors and lenders.. I know the government also has a hand in this, by insisting people get mortgages who otherwise should not…. but there are still decisions and assistance that can be made on the HUMAN level too. And that human level are the realtors and mortgage folk. Apparently greed has gotten the best of the, since they MUST be PUSHING buyers into the top dollar they can possibly choke down. OK let’s extend some reality to the buyer,buyer, think!! Think about the choice you are making! Educate yourself… perhaps you should not trust that realtor, maybe you should evaluate that loan. Hey that is an idea.. take responsibility for your own error.. what a concept. Yes, it all falls down to ourselves.. if we can get a clue.. if we can educate ourselves, stupid stuff happens far less!
I just get so miffed when I read all this stuff, thank you for letting me go off on this. I look forward to hearing some interesting comments to this one!
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(1 votes, average: 5 out of 5)
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July 17th, 2008 at 4:56 am
Ultimate responsibility still must fall on the buyers. They are the ones who have signed the paper work. They are the ones who should have looked at the monthly payment coupon and figured out if they could afford it or not.
Not that the mortgage companies or realtors have been saints. The mortgage companies should not have given loans to people that they knew could never pay for them. But, then they were also pressured by the gov to make it possible for almost everyone to buy a house. And, there is a misconception among buyers that the mortgage company would not approved them for a loan that they couldn’t afford.
And realtors - well, for the most part, their income is based on a percentage of the sales price. So, the higher the price, the more money the realtor gets. Buyers shouldn’t be shocked that their own realtor isn’t representing the buyer’s best interest.
And then there is the gov. They are making a huge mistake by giving everyone the impression that the gov will bail them out for their own bad decisions. If you invest in a risky stock, you might make alot of money or you might lose everything. This is why some people don’t risk everything on that one risky stock. But, if the gov will bail you out, why not risk it all? There is no “punishment” for a bad decision.
July 17th, 2008 at 11:04 am
definitely agree that the greed of a realtor is a factor in encouraging a buyer to go to the max.. but how horribly wrong is that.. how do those people sleep at night? I would prefer to be an honest sales person, one who sells what a person needs and will enjoy.. and come back to or refer me with confidence then a person who will curse my name for my greed. That is the shame.. the greed out there.. while it is a sales job, it is a people job too.. one where they are supposed to be advocates to the buyer.. representing the buyers best interest. and that obviously is not happening.
definitley above all BUYER BEWARE.. but obviously are not.. either they are misguided or utterly stupid. neither case is a good one. so they either NEED guidance or they need to NOT buy a home.
July 17th, 2008 at 2:03 pm
Yes, I believe that you would be the honest realtor, but that is because you have morals and character.
I notice that most realtors lack those two ingredients. Even on TV, look at the trend. Watch House Hunters, on HGTV. The realtors almost always show the buyers homes above their price range. It is always prefaced by “gee, look what you could get, if you just went $50K over your budget”.
What buyers need to figure out (and this requires thought, which most people seem to lack) is if they like their lifestyle with the purchase of the house. They need to review their monthly budget, and take out the mortgage, insurance, taxes and utilities of their “dream house”. And they need to live on that for a bit. If they can afford it, and like the life, more power to them. But, I think a lot of people would discover that they don’t like the life. That they miss movies, cable, out-to-eat meals, etc.
July 18th, 2008 at 8:06 pm
your summary of what a buyer needs to consider is exactly it.. they need to access the costs. their paycheck can not match their mortgage payment. they need to realize their will be other things outside of the mortgage they need to tend to.. and emergencies, home repairs/additions, and well just life in general.. and it is scary people are blind to that.. and dive into maxing themselves out instead. sad.. so sad. maybe thereshould be an IQ test to buy a house?? grin