Posted on 12/04/2006 1:47:48 PM PST by RobRoy
Actually, the causes for their (and a lot of other people - they just don't know it yet) are amply covered in the article. If you are thinking of buying your first home, I would wait until at least late next spring.
She is an accountant and didn't read the papers? What will a foreclosure record do for her future employability?
Mistake #1
Yeah. Problem is, a lot of people don't. Eventually it affects everyone. A lot of these "customers" for new homes should never have been customers. And less customers means lower prices. The whole housing bubble was a, well, bubble. People had loands that could not possibly be manageable unless 1) the value continued to climb at a rapid rate or, 2) they won the lottery.
The prices have flattened (which is only phase one) and not that many people win the lottery.
>>She is an accountant and didn't read the papers? What will a foreclosure record do for her future employability?<<
This is the law of unintended concequences. For people under 40, they have lived in a world that had so many laws protecting people signing contracts, and contracts have become so complicated, that they just "assume" they are protected and everything will be ok. The loan officer is like their mother telling them that, "Don't worry dear. This was drafted with the protection of your interests as it's primary focus and reason."
It was really drafted to make a loan officer a commission and a bank an indentured slave.
Reading contracts is, like, you know... SOOOO much work.
Being stupid can cost you a bunch of money. Details at 11...
That's insane. And interest only, to boot. Doubly insane.
>>Being stupid can cost you a bunch of money. Details at 11...<<
Yeah, but what if it's three of your neighbors?
I have six grown kids. They make stupid mistakes. Occasionally it costs me...
>>That's insane. And interest only, to boot. Doubly insane.<<
It is also frighteningly common.
It will impair her ability to obtain future employment at large corporations (incidentally, those usually have the highest salaries - oops); as they do credit checks - especially for positions where discretion and trustworthiness are paramount - such as "accountant". She could probably work in the financial departments of smaller companies, family-owned businesses, hospitals, or law firms - those organizations never check financial records. In the meantime, she really needs to consider employment if they are down to splitting single bags of rice. Self-imposed disaster calls for hard work to correct it...
Reagan80
This particularly human interest story is anecdotal. They use it to make the raw facts in the story more interesting. And one needs to ask, what caused the guy to lose his job? Some suggest the soft housing market is going to increase the unemployment rate. It's only opinion though.
You will also notice that it was an issue even if they did still work.
But they had that 55 inch TV, huh?
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." -Manuel II Paleologus
The borrower is truly the lender's slave (Proverbs 22:7).
>>But they had that 55 inch TV, huh?<<
You noticed that too? ;)
Don't get me started!
The Weisels avoided the extra cost of private mortgage insurance by getting a so-called 80/20 loan — two different loans that equal 100 percent financing.
so why didnt they buy a cheaper house???
The Atlanta Journal-Constitution (AJC) version of this sob story ran several months ago in a 5 part series which questioned Georgia's foreclosure statutes. Georgia's law on residential foreclosure is know as "non-judicial" foreclosure in that no trip to the courts is necessary to foreclose. The legally prescribed process is a series of steps which, in theory could be completed in as little as 40 days. What the AJC didn't mention is that the 40 day period does not typically begin until a debtor is at least 4 months behind in mortgage payments. Most lenders have no desire to hold real-estate acquired by foreclosure, since they typically lose money in the liquidation process. So, they tend to work with debtors as much as possible to restructure the debt, move payments to the end of the loan term, etc. - anything to avoid classifying the loan as non-performing or written off as in the foreclosure process.
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." -Manuel II Paleologus
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