Foreclosure threat reaches the burbs

TwinCities,com ^ | 12/3/06 | JENNIFER BJORHUS

[Petronski]

Sometimes there are no "cheaper homes".

Bunk.

You're not going to claim, are you, that $285k is the bottom of the market where they could have bought a home?

[Petronski]

Some markets are high, others are not. There is no single real estate market.

[goldstategop]

I don't blame them. They see politicians go on a spending spree and they wonder why they should be blamed for doing what every one else does. I agree its wrong and its a fast way to lose the shirt off your back. What am I trying to observe here is today we live in an instant gratification society and its compounded by the fact you can get something you think you can't afford by taking months or years to pay it back. The lure of the Credit Demon at work.

"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

[RobRoy]

>>You're not going to claim, are you, that $285k is the bottom of the market where they could have bought a home?<<

I dunno. Where I live the bottom (in simple middle class neighborhoods) is much higher than that.

Well, that is if you want ANY of the windows in your new home intact at the time of purchase. And something other than dirt floors.

But I don't know exactly where these people lived. But the "bottom" can be a pretty dismal and scary place. It sounds like bankruptcy and moving back where they can find work might be in order.

[RobRoy]

Yes. My friend sold his shack for $305k and bought a five bedroom brick home on ten acres in Kentucky for $128k.

[goldstategop]

Just what I said. If you don't intend to stay in a house for a long, its better to just pay the interest until it comes time to sell it and move again. Only if you're sure this is the home you really want to keep, go the traditional route. And make sure that after you take into account the loan and upkeep expenses, you have cash on hand for living expenses through the month.

"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

[Petronski]

I refuse to believe there was nothing more affordable. I do believe they were not prepared to live with less.

[goldstategop]

Some people who know what they're getting to, they can handle an ARM. I should really qualify my statement to apply to those certain to get in over their heads with this type of mortgage.

"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

[goldstategop]

There ARE cheaper homes available. But if its in a high crime area, I wouldn't live there even if it was the last home on earth available for purchase. I value my life more than whatever money I might end up saving, which isn't really worth the risk.

"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

[RobRoy]

I think there was probably something more affordable.

For example, in this ridiculous Seattle market, I pay $1,600 a month for a home appraised at just under $500k. I rent.

It is a nice place and I keep it nice. And let's be frank. Nobody owns real estate in the US. You rent it from the government.

I save LOTS of money every month and live in a nice place - all while real estate is most definitely hitting the crest of a very pointy bell curve. Maybe I'll buy something on the ride down the other side.

[Petronski]

Nobody owns real estate in the US. You rent it from the government.

If you want to live in a world with no police, courts, roads or schools, I hope you look like Arnold Schwarzeneggar.

[Petronski]

...all while real estate is most definitely hitting the crest of a very pointy bell curve.

Hyperventilate much?

[goldstategop]

Ultimately, we all live on someone else's kindness and should thank not just God but thousands of people we've never even met. We might just be in a position to return the favor to them someday.

"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

[JoeGar]

Ah, leverage. It cuts both ways.

[RobRoy]

>>Hyperventilate much?<<

Sorry. It went over my head.

[RobRoy]

Sorry, I am against the concept of property taxes. Once they charge a dollar, the sky is the limit, as they have proven.

It is like what happened with building permits. Today it costs roughly $26,000 to get a building permit here for a typical home.

In 1969 it was $7.

There is a little more going on here than inflation.

[RobRoy]

>>Ah, leverage. It cuts both ways.<<

Yup. ;)

[zek157]

I understand not reading some parts of a loan, but the bottom line concerning what it is tied to, term before rate changes etc., are important. I also understand some people are at a serious disadvantage concerning basic math.

I would not expect an accountant to have such problems. Having said that they were screw as soon as the husband was laid off and the wife got sick. Not having an income would sink anyone. 30-40% of the country's working population would be in serious trouble not getting the 2nd check in any given month. Reading, or not reading the documentation is secondary to that main issue.

[zek157]

even in the crappiest neighborhood 95% of the people are just trying to pay their bills and make ends meet every month. I'ts not that hard to stay out of harms way. Children do change the mix and shouldn't be brought into it.

The key is to stay away from the 2-3% that are pure evil. I lived in a crack neighborhood in the late 80's. Houses sold for 40-60K. We rented when we couldn't sell in the 91 downturn and waited. 15 years later the houses are 5-650K. Risk/ reward is awesome when it goes your way. Many of my contemporaries rented for much more than our house payment for security reasons and it took them years longer to get their 1st homes. Because we were always fugal and never overextended we ended up at the high water mark with 5 houses. Risk/ reward mixed with sweat equity is awesome when it goes your way. I'd do it again in a heart beat.

[ArrogantBustard]

IMO, getting 100% financing by any means is insane. Put something down, for pity's sake ...

I agree, though, that paying PMI is nuts.