Foreclosures closing in on cash-strapped families

Minnesota Star Tribune ^

[RCW2001]

The economy may be showing signs of recovery, but these are times of quiet financial desperation for a growing number of people in the crescent of suburbs that surround the Twin Cities.

Unemployment remains stubbornly and comparatively high in certain industries, and bankruptcy filings are surging. Home values continue to increase, but so do the number of people who can no longer afford to make their mortgage payments.

[69ConvertibleFirebird]

Forclosures SHUOLD be higher. In great economic times like these more people buy houses. Therefore, the number of foreclosures will also be higher. October of 2002 broke all past records for new home sales. Let the great economy roll on!!!

[lelio]

the median household income is $65,540 and the average sale price of a house in 2002 is up 19 percent, to $265,448
While I detest "averages" as they include the one multimillionaire buying an estate, the average house price being 4x that of income is scary.

[pabianice]

"People have been encouraged or duped into stripping all the equity out of their homes," said Liz Ryan Murray, a program officer with the Home Ownership Center, a consumer advocacy group in St. Paul.

"Wah! WAH!! Those evil businessmen made me overcommit! I'm not responsible! I want government help!!"

[freeper12]

>>Many homeowners have taken advantage of soaring home values and low interest rates and have borrowed heavily against their homes to pay off credit cards, meet margin calls in their depleted brokerage accounts, or buy new plasma-screen televisions.

Well now I feel REAL sorry for those folks...nothing like taking a 30 year mortgage out on your TV set...

I do believe so, so many people have been duped into removing all the equity from there houses in order to pay for a lifestye they couldn't otherwise afford and that smells like big trouble down the road very soon...how extaclt did so many people beleive that NOT paying off your mortgage as soon as possible is a good thing?

[speekinout]

Many homeowners have taken advantage of soaring home values and low interest rates and have borrowed heavily against their homes to pay off credit cards, meet margin calls in their depleted brokerage accounts, or buy new plasma-screen televisions. A job loss, drop in income or a sudden, unexpected expense has left them with little or nothing to fall back on.

I DO feel sorry for these people. But it's never been rocket science for people to know that they really should have at least 6 mos. living expenses in the bank, and that debt is a four letter word. Doesn't anyone get an education in basic economic principles anymore? Or is greed the only thing that counts?