Posted on 05/07/2007 11:29:18 AM PDT by ex-Texan
When foreclosures climb, entire communities can go down.
NEW YORK (CNNMoney.com) -- Foreclosures are devastating communities across the United States and the impact may only worsen as more subprime adjustable mortgages reset during the next few months.
Foreclosure filings are up 35 percent nationwide since a year ago, according to RealtyTrac.
Even in prosperous sun-belt places like Pima County, Ariz., which includes Tucson, foreclosures climbed 51 percent in just two years.
In Slavic Village, a working class Cleveland neighborhood of about 11,000 homes, 600 of them are vacant and boarded up, according to city councilman Tony Branchatelli.
* * * And the worst may be yet to come. Rokakis said Cuyahoga county is on track for 16,000 foreclosures this year, up from about 3,500 annually in Cleveland during the mid-1990s.
The impact can reach far beyond the affected homeowners. Rokakis says streets lined with foreclosures look like "mouths with teeth knocked out of them." * * *
On some Pittsburgh streets, reports Hayden, every fifth or sixth house is boarded up. * * *
[One man ] attend[ed] the sheriff's auction of his boyhood home. The outstanding balance on the mortgage was $85,000 but the house sold at auction for just $19,000.
(Excerpt) Read more at money.cnn.com ...
A good friend of mine living in California was forced to admit to me privately that things are really getting bad. He told me a story about a woman who was over her head in debt and is losing her house. Two years ago, she was bragging about the fantastic untapped equity in her home. She refinanced the morgage and bought a very expensive automobile. Went on a spending spree and took a European vacation. Now she is singing the blues.
Every cloud has a silver lining. Look on the bright side. By late next year, many people will be happily moving into homes they bought for under 50% of the value in 2005. The price roll-back may continue for another five years.
Looks like good times are coming again. But what do I know anyway? I am just a geezer living in Oregon.
Hillary has expressed concern about the foreclosures. It could be that she will take a stand on this issue and come out against foreclosures on those forced to take out risky loans which they didn’t understand because somehow Bush and his buddies pushed these loans on people.
“Bargains coming! Bargains coming! Sooner rather than later in your neighborhood.”
++++++++++++++++++++++++
Not so much of a bargain if Sen. “Better not get between me and a camera” Schumer (Dim, NY). We the taxpaying citizens will be paying for his proposed bailout of these “poor” homeowners who got themselves in debt by living beyond their means.
It’s Pelosi’s fault!
I have a good friend who bought his first house in S.Ore for 40K, mostly using an elaborate series of credit card promotional deals.
He later sold that house for 4x that and currently owns three others in town. He’s kind of a low key, long term flipper, but he says that he makes far more money on R.E. than in his regular job.
"More than 64,000 people in Cuyahoga County alone filed an objection to their assessments this year because their property values have dropped," Rokakis said.
And the actual owners of the foreclosed properties - the investors who own the loans - may stop paying taxes as well. Said Branchatelli, "They may send someone around to take a look at the place, who decides it's not worth even going through the foreclosure process. They may just take a powder."
It is all about how much money the government can squeeze out for taxes. It was never about affordable housing or good neighborhoods...
But what do I know anyway? I am just a blog pimp living in Oregon.
My 185,000 house is not worth 320,000 now but my tax bill says it is.
The market could loose 30% of its value and would still be overpriced.
Cheep money for all.
We need a good depression to bring people back to reality.
Manufacturing maters. Jobs mater. Food maters. Globing warming does not mater.
Spewing your kookery again. Can you keep your fear-mongering real?
Delbert -- Hillary is a grasping opportunist wild for political power. Worst of the worst in my personal opinion. Even the liberals I know are very tired of Hillary; her carping voice, frantic posturing and fake accents exhausts people. That being said, there are hundreds of thousands of people out who have been victimized by foreclosure scams.
I know because I used to own a house and rental property there. E.g. Bought a home for $ 40,000 in 1978. I painted it inside, put up very attractive kichen wall paper and refinished the hardwood floors myself. It was a smaller, two story dream house.
Indiana was like living in Beaver Cleaver times. People were wonderful. Neighbors came over with cookies and cakes when we first moved in. Neighbors ate picnics together and partied together during the winter. Winters were so harsh, you had to help each other.
Sold the home in 1985 for $ 46,000 after it had been listed for a year. Today, that beautiful home would sell for about $ 90,000. Perhaps more.
In California, it would be worth over $ 1,000,000 because it was in a historic neighbrhood with majestic mansions. Sadly, some people are living in a time warp.
“Mortgage companies are making huge profits. I want to take those profits and provide free housing to anyone who was stupid enough to hock their houses 125 percent of value for fancy cars and vacations.” /sarc
My wife and I are hoping for price drops here in Glendale/ Burbank/ nearby areas. Frankly, we want kids, and although we can have one (only) in the small townhouse where we now live, we’d prefer the bigger house before breeding ...
So while we wish no one ill, I am hoping the prices really come down.
Spelling also matters.
Don't you know that sellers forced buyers to overpay, realtors forced people to buy houses they couldn't afford and lenders forced buyers to get mortgages they couldn't afford? Some blog pimp on FR told me so. Buyers have no responsibility and everyone involved in the real estate business is a crook.
The evil bastard lenders are to blame, for ruining people’s lives by giving easy credit.
My parents, for instance, were in their 70s when they were approved for a 30 year adjustable rate mortgage. The payments jumped up to $3k a month, and now they face foreclosure.
No lender in his right mind should’ve given out that loan. Somebody in the banking industry has to start saying “No.”
What you said!
I assume you’re filing criminal charges against the person who held a gun to your parents’ heads and forced them to take out that ARM.
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