Skip to comments.
Mortgage foreclosures at 30-year high !
Lansing State Journal ^
| 11/30/2002
| Christine MacDonald
Posted on 11/30/2002 8:15:09 PM PST by ex-Texan
Mortgage foreclosures at 30-year high
By Christine MacDonald
As the economy continues to falter, mortgage foreclosures across the nation have jumped to a 30-year high.
And the few Lansing-area nonprofit groups that support homeowners say they don't have enough money to meet the growing demand for help.
Besides the rise in mortgage foreclosures, more Ingham County properties are in the foreclosure process. That's in part because of a new state law that lets the state foreclose more quickly on property owners not paying taxes, officials said.
To keep more people in their homes, the county treasurer proposes raising the income level at which homeowners can become exempt from paying property taxes.
"There's not a lot of help out there," said Treasurer Eric Schertzing. "I don't want to be in a position to put somebody out of a house when I see Lansing spending so much to get people in them."
TOPICS: Business/Economy; Crime/Corruption; Culture/Society
KEYWORDS: mortgageproblem; predatorylending
Navigation: use the links below to view more comments.
first 1-20, 21-40, 41-60, 61-69 next last
It is not the economy. It is another problem. With mortgages rates at 30 year low, and their revenue turning downward rapidly, lenders are finding 'creative' ways to seek foreclosure. Many of their methods are illegal. Some of the methods used are downright cruel.
To make matters worse, no one in state or federal government wants to deal with the problem.
Predatory lending problems not only involve snaky practices in granting loans -- they also encompass artful and not very clever schemes to defraud the public. The goal is to foreclose as many homes as possible.
Beware of lenders promising 'great loan terms' and amazing low interest rates. You will be sorry.
1
posted on
11/30/2002 8:15:09 PM PST
by
ex-Texan
To: ex-Texan
I don't see the problem. These people aren't paying their property taxes. The homes should be foreclosed on.
To: Texas Eagle
I don't see the problem. These people aren't paying their property taxes. The homes should be foreclosed on.I don't agree that they owe the leeches in government 'rent' in order to get to keep their property.
To: ex-Texan; Texas Eagle
My experience this year would lead me to believe the economy is not so great yet. I was downsized in January of this year.Had a rough time finding new work,although I did find work.
I've seen a few companies in SC go bankrupt and one once prominent textile company couldn't even cough up its county property tax payment.
To: Texas Eagle
Hasnt this been predicted because of lowering the qualifying down payment of 20% down to 5% or 3% in some cases. A large number of people are getting loans that in the past wouldn't qualify. And once that overtime that they were relying is cut back...they are in dire straights.
Perhaps the housing bubble is is starting to show....
To: BurbankKarl
I don't know about the down payment thing. I do know some lending institutions are financing up to 125% of the value of the property. That could have something to do with it, but, hey....that's a recipe for disaster.
How does that Chinese saying go? "If deal sound to good to be true, it probabry is."
To: ex-Texan
It is not the economy.
----------------
It's the economy.
7
posted on
11/30/2002 8:39:45 PM PST
by
RLK
To: ex-Texan
I agree with you that it's not the economy. But predatory lending is just a part of it. The other part of it is that there are too many couples buying houses these days based on two incomes. Take a two-income family making $100,000 a year for example. Instead of settling for the affordable 3-bedroom ranch house that would allow them to still make payments if one of them were to lose their jobs, they go for the much more expensive 4-bedroom colonial. Then when he or she gets laid off, they are thrown into a serious financial crisis.
It is also not a good idea to purchase a house unless you have at least 20% down. And it is not a good idea to take out a second mortgage or an equity loan to pay off your credit cards and other debt, unless are are serious about not running up consumer debt ever again.
To: SamAdams76
Huge Foreclosures and Yet a Booming Housing Market ???
9
posted on
11/30/2002 8:42:00 PM PST
by
scooby321
To: Captain Shady
My experience this year would lead me to believe the economy is not so great yet. I was downsized in January of this year.Had a rough time finding new work,although I did find work. I've seen a few companies in SC go bankrupt and one once prominent textile company couldn't even cough up its county property tax payment.Economies have gone up and down since time immemorial. I don't doubt that there are rational explanations for some of these foreclosures (sickness, death of one party involved, divorce, etc.) but knowing human beings the way I do (I am one), I can't help but think that most of these people simply have misplaced priorities. Meaning they spent their money on goodies instead of property taxes.
To: SamAdams76
I agree with your major points, but 20% down is something alot of Americans can't even fathom let alone come up with.
11
posted on
11/30/2002 8:44:08 PM PST
by
cmsgop
To: SamAdams76
Instead of settling for the affordable 3-bedroom ranch house that would allow them to still make payments if one of them were to lose their jobs, they go for the much more expensive 4-bedroom colonial I'm amazed at the size of the houses I'm seeing built in my area. I live in a small community, therefore I know where these people work and about how much income they have. I have to wonder how in the world they can expect to afford their mortgages which has to be over half their income.
12
posted on
11/30/2002 8:49:01 PM PST
by
Nubbin
To: Texas Eagle
"Meaning they spent their money on goodies instead of property taxes."Property taxes in the midwestern states that I've seen are way out of line. It's not the people that spent the money on BS, it's the local govm'ts that did. The biggest spender hog is almost always the local school dist. The more they spend, the more ignorant the kids end up, but the teachers and all their administrators live very well. It's not NEA members and local gov. gangs members that don't have enough to pay the taxes, they always ensure that.
13
posted on
11/30/2002 8:50:44 PM PST
by
spunkets
To: Lester Moore
Too true. I would hope (but not expect to see) movement in government to get rid of these kinds of property taxes. What you own, you own. Paying for connected services is one thing, but footing the bill for every g*dd*mn perk that a liberal government and lazy constituency can think of is another thing altogether.
To: Texas Eagle
Meaning they spent their money on goodies instead of property taxes.In my county,most of property tax is supposed to be going to public schools. Yet the schools look more like prisons than learning institutions.Thought we were supposed to get what we paid for.
To: Nubbin
Don't forget that most people who overextend themselves financing these large homes also finance their cars as well. And they aren't settling for a Ford Focus or a Nissan Altima either. It's usually got to be a Lexus or an expensive SUV for these people. A recipe for disaster. These people only "rent" their lifestyles. They are just a paycheck or two away from financial ruin.
To: ex-Texan
Besides the rise in mortgage foreclosures, more Ingham County properties are in the foreclosure process. That's in part because of a new state law that lets the state foreclose more quickly on property owners not paying taxes, officials said. Humm there's that word again it seems to be everywhere.
Democrap
17
posted on
11/30/2002 8:59:54 PM PST
by
Democrap
Comment #18 Removed by Moderator
To: ex-Texan
Caveat Emptor, except it should be borrower beware instead of buyer beware, but I don't know the Latin word for borrower. In any event, when someone borrows money to buy a house, they have to make sure that they can afford to make the payments. This means having a "rainy day" fund available to make payments for at least six months should a job be lost. It also usually means putting a little more down to avoid PMI, which might mean settling for something a little less than optimal. It also might mean a car instead of an SUV. Finally, it means not carrying a balance on your visa card for 18% per year.
Well, that's my take on things. Sure, some people are probably unfairly disclosed on, but in a lot of cases, the borrowers bit off a bit more than they could chew.
19
posted on
11/30/2002 9:08:44 PM PST
by
Koblenz
To: Nubbin
You put your finger on one measure of how serious this problem is becoming--the percentage of mortgages that require more than 50% of income to make payments. This too is at an all-time high.
With such low interest rates, imprudent borrowers get themselves in way too deep, and together with other ballooning installment debt, lose control of their finances.
While there are banks and finance companies which will approve crazy loans, no one ever yet forced a customer to borrow too much money.
Navigation: use the links below to view more comments.
first 1-20, 21-40, 41-60, 61-69 next last
Disclaimer:
Opinions posted on Free Republic are those of the individual
posters and do not necessarily represent the opinion of Free Republic or its
management. All materials posted herein are protected by copyright law and the
exemption for fair use of copyrighted works.
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson