Reader comments
Foreclosures rose 75% in 2007

Who's responsible | 7:28 a.m. Jan. 30, 2008

I guess the economic policies of the Bush/Cheney administration have not had the desired impact.

Will we look back in two or three years and say they were failed economic policies?

The hands off policy in the loan industry have contributed to abuses and the current situation.

Utah had almost ten thousand forclosures last year and the number is expected to rise dramatically this year.

The fed is trying to avoid a melt down by dropping the interest rate again today.

Who will benefit from the resulting inflation?

Will we look back and say this is a good or bad thing?

Any comments?

Dave | 7:39 a.m. Jan. 30, 2008

99% of homes are not in foreclosure. Why are you trying to make a mountain out of a mole hill?

BH | 8:06 a.m. Jan. 30, 2008

Dave:

Isn't that a little of the ostrich sticking it's head in the sand approach?

At 1%, a reasonable estimate would be about 7,500 houses in Utah that are in forclosure at any time.

Comments continue below

Earl | 8:23 a.m. Jan. 30, 2008

Dave, tell that to the people who are in foreclosure. Maybe it will make everything alright.

Commercial Banker | 8:23 a.m. Jan. 30, 2008

Another gloom and doom headline. The headline should of read for the Utah readers "Utah bucks national trend, foreclosures down 26%". Many people don't see pass the headlines. We are creating a deeper problem then necessary here in Utah buy headlining bad national news to an otherwise relatively stable market.

Get Real | 9:11 a.m. Jan. 30, 2008

Who's Responsible, can you explain to me when Bush/Cheney forced these people to sign mortgages they had no business getting, or forced people to buy homes much bigger than they actually could afford, or forced people to sign for an interest only/A.R.M. mortgages with outrageous rates? Sure the mortgage companies shoulder some blame. But when I first got a home they "qualfied" me for a payment that would have been more than 60% of my income. Fortunately, I figured it out and realized that I better settle for a smaller home but one we could actually afford. You obviously love socialist governments and along with Hillary Clinton believe we ought to "Freeze Foreclosures." This country was built on personal responsibility. If we take that away from everyone, we take away their freedom. If we take away our freedom, we have thrown away our own God-given free agency and what so many have given their lives to defend. It is sad to lose a home and I, because of earlier poor decisions know how it feels, but we cannot take away personal responsibility. The good news is they still have a job, their family, and can start again.

Anonymous | 9:44 a.m. Jan. 30, 2008

I agree with get real. You can't blame the president for a person buying a home they can't afford. Take responsibility for yourself.

Anonymous | 10:14 a.m. Jan. 30, 2008

I love how everything that happens wrong in America is instantly Bush and Cheney's fault. Do you want or expect government to run your life? The government did not put these people into homes like some communist dictator. Sometimes I think that what liberals want is someone to tell them everything that they should do. That way they can pawn the responsibility on someone else.

I'm just saying... | 10:28 a.m. Jan. 30, 2008

The problem with 1% of homes in foreclosure is that a fraction of 1 percent is a huge shift. The real estate economy is like a juggling act on a tightrope. The balance is so delicate that a slight tap on the tightrope could really upset the balance of that juggling act. Obviously the economy won't go tumbling down to the ground in a fiery infernal depression or something. But all it takes is 1 foreclosure in every neighborhood to give a hearty haircut to every home value in that grid. So going from .5% to 1% IS A HUGE DEAL.

Having said that, is it really a bad thing? Utah's market NEEDS a haircut. When prices are this out of line with wages, the only thing sustaining it is inmigration and deceptive lending. Both are drying up here. Sellers are going to have to start marketing to LOCAL first-time buyers again to keep the market healthy. 1st timers have been overlooked recently.

And sadly, those who stupidly signed their souls away to the bank weren't always buying more house than they could afford. It was them buying MODEST homes with appallingly high PRICE tags. This will need to change.

Anonymous | 10:29 a.m. Jan. 30, 2008

People forget the Great Depression didn't just happen overnight. It took a couple of decades to get going. What we are seeing are the early warning signs of Great Depression II.
The Great Depression I was manipulated by the same types we have today. As the average American found the going tougher and tougher, the fat cats with all the buying power got richer and richer.
Disgusting, isn't it?

Earl | 11:44 a.m. Jan. 30, 2008

I'm surprised that no one has identified the real culprit in this debacle: the Federal Reserve system of fractional banking. The system has made saving punitive and borrowing rewarding. It's upside-down and backwards. Democrats and Republicans alike are guilty of preserving a corrupt system of money and banking.

Media Spin | 12:29 p.m. Jan. 30, 2008

Utah bucked the trend, but we still ranked 15th in number of foreclosures. We also still rank fairly high in number of personal bankruptcy filings and the spin is that the economy here is strong and stable.

Re: Who's Responsible | 12:57 p.m. Jan. 30, 2008

What economic policies? I didn't realize they had any... short of rebuilding Iraq.

Anonymous | 1:09 p.m. Jan. 30, 2008

I remember a professor of Economics saying:
"When your government is telling you there is nothing wrong with the economy - watch out!"

Amy | 1:06 p.m. Jan. 30, 2008

I'm still waiting for house prices in Utah to get back to a reasonable number. My husband brings home $6,000/mo in take-home pay and we cannot find a house in Utah County with 4 bedrooms (we have 4 kids) that is less than $2,000/mo, weith escrow (we are not foolish enough to pay more than 25% of our monthly income on a mortgage). Most people I know do not make anywhere near what my husband earns... and they live in homes that are 4-5 times their annual income. How, and why? It's crazy.

Anonymous | 1:13 p.m. Jan. 30, 2008

Another disgusting thing is that businessmen get nervous and go into downsizing mode. The employees fortunate enough to survive the cut get to do two or sometimes 3 or more times the work to make up for the employees who got the axe.

Anonymous | 1:24 p.m. Jan. 30, 2008

It seems to me the shakey economy should be the common factor to unite Americans. But if things hold the way they have always held, watch for the Neocons to start blaming the liberals for the problem.
This is how they got the bozo we have for president elected. Always attacks on the liberals and the so-called "drive-by media."

No Home... | 2:18 p.m. Jan. 30, 2008

Sooo... Bush is again to blame for moronic choices by the general populace? I feel like laughing until I'm sick at people complaining about their mortgage costs, taxes, insurance, etc. and then hear about their "interest-only" or "incredible ARM" they used to get into their home. They deserve all the future problems they get due to their stupidity.

As for Utah bucking a trend? Our forclosure rate dropped 25+% and we're STILL 15th in number of foreclosures? That says something to anyone with half a brain. Also, we didn't buck the trend. We just sit on the back side of the wave. It seems everything here happens just a bit delayed. Just wait for the foreclosure numbers during the next year or so and then tell me about the trend we "bucked".

Let's get housing back in line with the wage earner's salary soon or we haven't even begun to feel the problems in store.

Matter of perspective | 2:19 p.m. Jan. 30, 2008

During the ï¿½high timesï¿½ of real estate, a lot of people made the decision to assume massive mortgage payments operating under the fantasy of getting rich off of appreciation and choosing a path of self-imposed ignorance. These people are the primary culprits, knew what they were getting into and should have to suffer the consequences of THEIR decisions. No one forced these people to assume the loan or buy the house.

Remember, Realtytrac is reporting foreclosure filings, not actual foreclosures. The number of filings could be more than actual foreclosures. Again, we are only talking about 1% of homes right now. Will it get worse over time for some, I believe so. However, it has to happen for prudent pricing, balance and affordability to be restored to the market, particularly in Utah.

When the housing bubble burst in Japan, prices fell by roughly 70% over a 12 year period. This is a country where practically everybody has savings and foreclosure is viewed as a black eye to oneï¿½s reputation. Unfortunately, this isnï¿½t necessarily the case for many Americans, who donï¿½t save and view walking away from their financial commitments as ï¿½no big dealï¿½. The correction is far from over.

To: Amy | 2:34 p.m. Jan. 30, 2008

I know for a fact that there are 4 bedroom homes that you can get a 30 yr fixed loan on for under $2,000 a month. You just need to stop looking at all the new homes.

Anonymous | 3:39 p.m. Jan. 30, 2008

I say we all ban together and buy nothing for a while. Bare necessities - Period! That may level the playing the field somewhat.
Then get a jury trial for a tax-revolt case and have them acquitted. This will set a legal precedent that will be a shot heard round the world.

To: Amy | 3:56 p.m. Jan. 30, 2008

Utah County huh? You need to look at Eagle Mountain. The housing prices there are amazingly low compared to the Salt Lake Valley where we live. We are presently looking at new and existing homes that range From $180,000 to $250,000. and alot of these homes DO have 4 BEDROOMS. We've been looking all over since last April for a 4 bedroom home for our family of 5. Eagle mountain is deffinately affordable for our income and we are prepared to put in an offer. It's also Beautiful out there and growing rapidly! Look at Bigg Homes, and Pioneer Builders. Also look into Saratoga springs, and Lehi. If you look long and hard enough, with your income, there are homes out there to fit your family neds and budget. Besides the interest rate for mortgages is at an all time low. hope it helps.

And what about the lenders? | 4:15 p.m. Jan. 30, 2008

I think it's a bit disingenuous and simple-minded to try and blame only the government, who thanks to deregulation arguably has little (or insufficient?) control over the banking industry, or the borrowers, who did what they had to do to qualify for their loan. So far I haven't heard anyone blaming the institutions that made the loans, or their risk managers that gradually relaxed credit standards over the last few years so you could get an ARM or an interest-only with a sub-standard FICO score. Our global economy is a very tangled web, and there are a lot more strands to this spider-web than just Bush/Cheney and the individual consumer.

Frugel | 4:50 p.m. Jan. 30, 2008

I say "don't sign papers for a home you can't afford - if it doesn't work on paper and leave you enough for savings and a reserve, then it doesn't work". I'm a single mother and have a four bedroom home and my payment is $1100.00/mth, but I don't have to live at the top of the moutain to be happy. Save, budget, only by what you need. "Easy!"

Janey | 4:52 p.m. Jan. 30, 2008

I am totally just sick about this. The thought of people losing their homes just because they trusted things to work out. My heart aches for anyone who pinned their hopes and dreams on having a home of their own to shelter their families and have a place to go after work. I want to know the right area to focus my anger at whatever entity caused this fiasco.

Who cares | 4:58 p.m. Jan. 30, 2008

When I bought my home, I new exactly what I was getting into. I reviewed the thousands of documents and reviewed the amortization schedule. These people that go into fore-closure are financial idiots that did not review the terms of the loan or way any risk factors. 25% of your net income, financed by 15 year mortgage will keep your mortgage payment resonable to what you can afford. People that buy things on a whim, without looking at the power of interest deserve to be chained to interest. It does not make sense to spread costs over 30 years. They should have never bought the house, if they had to use arms or balloon payments. Hello people!!! Own up to what you signed and committed yourself too.

Roady | 5:18 p.m. Jan. 30, 2008

the way I look at it people who say "gov't stay out" are the ones who will have their "dream home" foreclosed on, then they will blame the gov't for not helping. When the gov't tries to help, we cry! When the gov't doesn't help, we cry!!

The only people to blame is yourself!!!

Bob Allen Lequia | 9:25 p.m. Jan. 30, 2008

Personally, I am an Educator in the Stock Market. I disqualify and qualify clients that want to make money in the stock market which is still very possible if people become educated in it. I have clients that are in Real Estate looking to the Stock Market as a second income maybe first with how things are. Bank Loans should have never been issued to people who don't and didn't qualify. Many people were accepted for bank loans without submitting any paperwork just so the banks to take money from them. Tell me this is the proper way to do business. The Banks that gave these loans to potential home owners should pay a severe penalty.

To: Who cares | 10:56 p.m. Jan. 30, 2008

Let's do some math together shall we? you have the right idea but this is how it all spans out: say a typical middle class family takes home $50,000 net and wants a 4 bedroom house for their family of 5 and a mortgage payment of only 25% of their monthly net. Well 25% of $50,000 is $12,500 divide that over 12 months and you got $1041.67. now using an amortization calculator, with a 15 year mortgage, that gives the middle class making just over $50,000 a year, a mortgage of $125,000! (roughly $1041.36 a month) which puts this family of 5 into a 2 bedroom condo! it can't be done! it's no wonder people forclose, the price of modest houses greatly exceeds the typical family wage. most Middle class families can't just spend 25% of their income, they need to spend more just to have a simple roof over thier heads. the problem is houses are ridiculously priced for the average income. It's a housing problem.So untill things improve, people will continue to spend more than 25% of thier income, and if not SMART with the REST of their money, and well educated on the subject, will eventually forclose.

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