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Foreclosure Here, Foreclosure There...

The Beverly Hillbillies I was speaking with a colleague today about the market in general and he casually mentioned that this past weekend had been "Beverly Hillbillies" weekend in his [very nice and rather upscale] golf course neighborhood. Why? No fewer than three families within eyesight of his front porch moved everything out of their [formerly impeccably maintained] $800K homes, packed as much as they could on top of trucks and cars, and left everything they couldn't move out in time to be lost to the bank through foreclosure.

Unlike the Clampetts, these folks are forced to move away from 'the good life' to a place that likely won't be as nice as the one they're leaving behind. They weren't able to find their 'bubblin' crude' that would let them live a life beyond their former means. They're headed for a world where the only certainty is that credit won't be the means by which they improve their lifestyle. Ahead for them is a world where cash on the barrel-head will become the norm, where owning a house will once again be a dream enjoyed by other people, and where living beyond one's means is simply not possible because they're just not a good enough risk. They'll have to re-learn financial discipline and how to save for what they want to own. They'll have to work hard each day to have what they need. They'll have to stop taking for granted that things will simply always be provided for them merely because they decide they want those things. Sounds pretty old school. Kind of 'Depression-era' in it's mentality.

Maybe the Clampetts and their simple life mentality had it pretty good before they moved to Beverly Hills-- and maybe they just didn't know it.

Chris Hendricks

Posted by Chris Hendricks on 09/18/2007 06:52 PM

Comments (5)

beverly hillbillies, clampetts, credit, foreclosure

5 Comments on Foreclosure Here, Foreclosure There...

SEP

2007

Hi Chris,

These are hard times and I feel so sorry for those folks.

Anthony

Please excuse however my comment may come across but this post does read rather dismal, judgmental and assumptive in nature. Whose to say that one of those families didn't suffer a death in the family, or some major illness that has severely impacted their income.

Pardon my soap box stance (I am an Oakland native), however, living here in Sacramento where there truly is "Foreclosure Here, Foreclosure There" it is sad to see what some families are going through.

In the event that a family is in foreclosure do to financial mismanagement what we have to keep in mind is that not all of them got there (to the point of foreclosure) on their own. They had a least two "trusted advisors" that we know of...Their Realtor and their Loan officer (who in some cases are one in the same). Were these advisors "trustworthy" enough to walk away from a commission if they knew their clients were getting in over their heads?

Tracy: You raise a good point about trusted advisors that may have potentially let their clients down by not sheltering them from a mistake. Certainly there are times when death or other catastrophic events cause people to fall on difficult times but aren't those the times when folks normally see catastrophe coming and take the hard but necessary steps to make the adjustments and avoid foreclosure? I know there are exceptions and that we should be sensitive to them when they occur, but it seems folks that end up all the way through the process of foreclosure all to often arrive there carried on the back of a healthy dose of financial denial. Am I overstating it or do most folks simply give up rather than ask for help before the "worst" happens?

No matter how we look at the recent disaster in real estate market... it is sad, very sad! We all dream for a home of our own. Some are carried away and overestimate the opportunities that was apparent for several years. It is the human nature to rich out... sometimes to far. But no matter what it is a sad moment in America's most popular desire. To have your HOME.

SEP

2007

Good Morning Chris,
My heart does go out to these people. But, I must add a but --we as in the American people, have become very accustomed to getting what we want when we want it. Not having to make any sacrifices along the way. Unfortunately, now some people are going to have to relearn as you said. A good post.

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