Posted on 01/31/2008 12:11:12 AM PST by bshomoic
All Things Considered, January 30, 2008 · The booming city of Fontana, Calif., is a thick sprawl of closely packed subdivisions. People who couldn't afford a home in Los Angeles or San Diego could buy one here — in San Bernardino County, about 50 miles east of Los Angeles.
But as housing values tumbled — and subprime mortgages ballooned — Fontana became one of the many epicenters of foreclosures in Southern California.
In San Bernardino County last year, more than 7,700 homeowners lost their homes to foreclosure — a 719 percent increase in just one year.
Janice Rutherford is a city councilwoman in Fontana. Her neighbors lost their house to foreclosure. She figures they paid about $250,000 for the house.
By the time the bank repossessed it, the neighbors owed more than twice that amount: They had borrowed repeatedly against its inflated value, and when values slumped, they were "upside down" on their mortgage — with negative equity.
Stories similar to this — of people using their property like ATM machines — are plentiful in this region of Southern California, known as the Inland Empire.
"I feel bad that people got themselves in over their heads. People in these houses borrowed against the future, spent money they didn't have. Our government does the same thing, so it's no surprise that people think, 'Hey, this is the way to do it,' " Rutherford says.
And when housing tanks — and the economic forecast for the future looks gloomy — everyone feels the pain, from car dealerships to housing contractors.
Marty Stout, chief operations officer for Mayer Roofing, says that at the peak of his company's business in 2005, it had 850 roofers working for it. Now, there are 200.
Betty Larkins, of Moreno Valley, Calif., is another homeowner who is feeling the pain of foreclosure. She fell victim to what she calls a "ridiculous re-fi," and her monthly mortgage payment soared to $3,000 from $1,700. With just her Social Security and pension income, she couldn't keep up.
Larkins fended off foreclosure for a while. But now, her house has sold at auction. She has to be out by next Wednesday.
Larkins says she recognizes her own story when she reads about foreclosures in the paper.
"I say, 'Gosh, here's another one of me. Gosh, what's happening with the world?' All of it is not necessary, that's my thought," she says.
And in 2008, people expect the foreclosure rate to spike again — with another batch of adjustable mortgages due to reset at higher rates.
I’ve mentioned this on other threads before:
My brother-in-law bought a house in Northern California for $600,000 in 2000. He now owes 1.2 million. He makes slightly over six figures. He can’t sell the house for what he owes and is robbing Peter to pay Paul. I expect that he, his wife and his 4 children will show up on my doorstep one day because the bank(s) will foreclose. It’s only a matter of time.
He’s a genius, but no common sense. Meanwhile, we’re in an 11 year old house with a low fixed rate and a mortgage we can afford. When my kids ask how some of their friend’s parents can make so much money that they’re in McMansions I tell them that the more likely scenario is they’re “highly leveraged.”
“Does anyone in Calif remember what happened when Klinton killed the aerospace industry in the LA area? “
Actually, no. I worked in the LA aerospace industry from the early 80s Reagan build-up to 1990. When I quit Hughes Aircraft Co. in 1990, it had peaked at about 86,000 employees. In the summer of 1991 I remember reading an article in Business Week which showed the main entrance gate to the HAC complex. The article was about plummetting aerospace jobs. I think Hughes was down to under 70,000 employees. The crash in aerospace jobs started way before Clinton ever got elected.
Yes and no. Yes, the (lack of) education system, and if you ask these foreclosurees, they'd probably admit to saying "when am I ever going to use this stuff?!" in math class.
Could this have been brought on by our education system? “Hey kids, you can have it all”.
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
Yes, it is the education system, if you want to call it that. They are indoctrination centers spewing socialist garbage everyday. Then add in Hollywood’s “evil corporations” mantra, gobull warming and no saying “mom and dad” in the curriculum and they don’t teach much of anything of true value anymore.
Do a majority of schools teach logic? Do a majority of schools teach economics? Do the majority of schools teach history? or Math? or Reading?
It was recently that I was posting on a thread that 45% of Pennsylvania high school seniors could not pass the exit exam. 45%, wow.
NO, the schools do not teach real subjects for most of the school day. It is a crime. And the criminals are the idiocrats that run it.
What about migration?
LOL
Amen.
Oh, I disagree. I do agree that attitude does permeate the advertising industry but it is also prevalent in the public school system. Look how much sex education they promote in school. “Yes kids, do it, but be safe and there will be no consequences.”
Why is it that housing prices have gotten so high in the last 10 to 15 years and young people want the brand new house? I got into my first house (not new. Actually about 60 years old and it was old)by scrimping and taking out a separate loan to afford the down payment. That was 35 years ago. I’m still in that house. The education system tells the students that they deserve the best and guess what, they believe it.
L
That sounds interesting --- do you have any details? I thought that virtually all mortgages these days were not assumable, so I am curious how this "trading" might occur. I did a Google news search, but I didn't see any articles related to individuals trading mortgages.
Didn’t the Democrats in Congress demand that banks and mortgage companies grant loans to poor blacks and “at risk” borrowers, regardless of their ability to pay ?
Sorry ~ I do not.
The program was on KOGO here in San Diego yesterday, Wed Jan 30 between 5:00 and 6:00 AM (pacific time)
Just called KOGO and was told to contact the program director, Cliff Albert.
His voicemail said to email him, so here's the info:
cliffalbert@clearchannel.com
Good luck!
Maybe, since Washington State is a follower of California, we will see the same.
Oh, I disagree. I do agree that attitude does permeate the advertising industry but it is also prevalent in the public school system. Look how much sex education they promote in school. “Yes kids, do it, but be safe and there will be no consequences.”No. Have you been to a sex ed class in the last 10 years? They basically try to discourage you. "It's a bad idea, here are all the diseases you can get, if you wait it will be better, if you're really desperate please use a condom, they're available from the medical center, here's how you put one on a banana".
Why is it that housing prices have gotten so high in the last 10 to 15 years and young people want the brand new house? I got into my first house (not new. Actually about 60 years old and it was old)by scrimping and taking out a separate loan to afford the down payment. That was 35 years ago. I’m still in that house. The education system tells the students that they deserve the best and guess what, they believe it.
“Betty Larkins, of Moreno Valley, Calif., is another homeowner who is feeling the pain of foreclosure. She fell victim to what she calls a “ridiculous re-fi,” and her monthly mortgage payment soared to $3,000 from $1,700. With just her Social Security and pension income, she couldn’t keep up”
I guess someone just put a gun to her head and forced her into signing those ridiculous re-fi papers.
No, but I certainly read what is taught in the public schools.
No, but I certainly read what is taught in the public schools.Reading and seeing are different. You'll find that public schools are just a bunch of well meaning, completely ineffectual liberal goobers trying to survive. FReepers and the MSM love to attack schools because they're easy targets and weak.
Just because someone is Mormon does not mean they stay moral. No one is moral. Many (Christians)subscribe to moral tenets but no one is capable of being moral. If you don't believe that our public schools promote promiscuity by what and how they teach you have your head in the sand. I see the results of public education and don't need to be sitting in the classroom.
Just because someone is Mormon does not mean they stay moral. No one is moral. Many (Christians)subscribe to moral tenets but no one is capable of being moral. If you don't believe that our public schools promote promiscuity by what and how they teach you have your head in the sand. I see the results of public education and don't need to be sitting in the classroom.No it doesn't mean they stay moral. However *on average* the mormons I know are the most upright people I know. I can't have a beer with my Mormon friends, which is a bit depressing and I haven't seen Jesus running around North America either, but I still respect them.
I think girls and boys sitting in school together being taught sex education from an adult point of view leads them to search (movies,internet, etc.)and experiment. I agree that there are a number of things that lead to the promiscuity that we see. To say one is ranked higher than another is a tough call.
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