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FORECLOSURES UP 112% !!!!!!!!!!! We want it all?

By Ann Sabbagh

Mortgage and Lending with Seacoast Mortgage Corporation, RI (20021119LB & 20031576LL), MA (MC2107) & CT MLO 10920

April 29, 2008 01:13 AM

"More than 155,000 families have lost their homes to foreclosure this year; one out of every 194 U.S. households received a foreclosure filing."

WOW! Is it just because of the sub-prime market OR is it ALSO due to: 1) Over-spending, 2) increased prices in food and other staples 3) Oil crisis 4) Job market 5) Escalating tuition costs,......

Yes, we had uneducated consumers buying homes and hoping they could meet the mortgage payments and their credit card bills and their auto bills.

Is the foreclosure crisis due to the "We want it all" syndrome??? Is this really why we are seeing so many foreclosures?

What do you think?

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Valerie Osterhoudt

Johnson Real Estate, Inc. - Cromwell, CT

ABR, Cromwell, CT Real Estate ~ 860.883.8889

Ann...

I think it is a combination of things. Mortgage companies informing clients that they (CAN) purchase a home that is way out of their means.... and MOST importantly uneducated buyers believing them. I think a lot of buyers looked through rose-colored glasses in hopes they can get the *grand* house, on an income that just won't substantiate it.

Apr 29, 2008 01:25 AM

Don Rogers

Keller Williams Realty Chesterfield - O'Fallon, MO

Realtor, Broker, CDPE, GRI, OnullFallon MO & St Charles County MO homes

Ann, Good post. Thank you for stimulating my thinking so early in the morning. I am thinking that you have some valid points. One additional point would be that when the buyer got their loan (ARM) at a low rate they got use to the extra money and quite possibly forgot about the reset date on their loan and it got by them. Then coupled with the rising economy what was left? TROUBLE Just my thoughts

Don R.

Apr 29, 2008 01:28 AM

Jon Zolsky, Daytona Beach, FL

Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL

Buy Daytona condos for heavenly good prices

You know the answer, don't you? You sure do.

Is it "all of the above"? Plus educated but ignorant real estate agents, who helped fueling the mess, securitization of mortgages, so not only US is coughing, but the rest of the world is starting feeling dizzy

Joe Virnig

RE/MAX Gold Coast REALTORS, Ventura County, California - Ventura, CA

No Ordinary Joe

It's a snowball effect. It started with crazy financing that caused demand and prices to reach unsustainable levels. The resulting fallout affects all homeowners.

Apr 29, 2008 01:46 AM

FORECLOSURES UP 112% !!!!!!!!!!! We want it all?

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Ann Sabbagh

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