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Faces of foreclosure
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Cry Me a River.... | 12:45 a.m. Aug. 31, 2008
"We have a lot of middle and upper class that just bought way more house
than they could really afford."
Bingo! Enough said.
Bingo! Enough said.
WAAAAA | 1:56 a.m. Aug. 31, 2008
Personal responsiblity, folks. Personal responsiblity. Don't buy it, ifyou
can't afford it.
Comments continue below
Anon | 3:34 a.m. Aug. 31, 2008
To the first two posters. I don't think you read the article correctly. It
sounds like these people were not trying to scam or cheat. They were just too
trusting. Also, life happens and bad things happen and it is not always
something we choose. Job losses occur, accidents happen, life happens and even
when we make right choices others may not. It is sad but true. I think the whole
country is learning a lesson right now and I for one am hoping it makes us all
stronger and wiser.
GoodGuyGary | 3:38 a.m. Aug. 31, 2008
I can't agree with the comments more. We have one kid, and I made well
over 80K a year, and we still don't dare to buy a house. Why would these
people making 52K think they can afford one???
Anonymous | 4:13 a.m. Aug. 31, 2008
Yes, everyone feels bad when they see the faces of families who are losing their
homes. What about the faces of people who haven't been able to afford a
home because prices were driven up by wild speculation and people buying way
above their means? Oh, yes. These people are called RENTERS. Which is exactly
what will become of those who lose their homes.
Everyone ignores the happy faces of the families who are now able to afford a home because the market is correcting.
Everyone ignores the happy faces of the families who are now able to afford a home because the market is correcting.
Bob G | 4:36 a.m. Aug. 31, 2008
Ignorance, blind trust, and deception in lending are responsible for the housing
market collapse. All are to blame but the lending market put the squeese on
buyers at closing with threats and law suits if they didn't sign the
altered contracts put before them. The legaleeze of contracts that only a lawyer
and supreme courts understand are also at fault. I also blame city planners,
zoning departments, and councils for some of the blame in allowing unethical
business to operate in their cities. After all, the cities approve unethical
business licensing and home building. Cities need to be held more liable for who
they allow and give licenses too. Many cities give licenses without any
background checks or the standards of businesses operating within the cities.
City leaders knew of these pending problems with new home owners and in many
contracts demanded the indemnification of the city of any liability on the part
of builders and lenders. Although city laws and codes demand that a businees
obey all laws of the city, state, and federal government. This fraudlent and
corrupt mortgage crisis was preventable. Now its time to watch the credit card
collapse for the same reasons.
Tom Joad | 4:38 a.m. Aug. 31, 2008
It's interesting that the local media were cheerleaders for this debt
fueled house bubble, even long after it was very apparent that things were
tanking. Now they run articles like this when even people living under a rock
know there's a BIG problem.
Local government officials are scrambling to vote themselves raises before the public realizes what they are doing. They know that voting themselves a raise a year from now will cause an uproar.
They are also looking under rocks to figure out how to get into everyone's pockets. They are looking to hike fees right now but will search for more ways to pic our pockets clean. What they need to do is start firing government employees and stop doing projects that are just their personal pet projects and are not essential services.
Local government officials are scrambling to vote themselves raises before the public realizes what they are doing. They know that voting themselves a raise a year from now will cause an uproar.
They are also looking under rocks to figure out how to get into everyone's pockets. They are looking to hike fees right now but will search for more ways to pic our pockets clean. What they need to do is start firing government employees and stop doing projects that are just their personal pet projects and are not essential services.
Kidding Right | 6:05 a.m. Aug. 31, 2008
She had to have some idea that her son was, or might be a deadbeat. To find out
two weeks before foreclosure is a joke. Foreclosure doesn't happen in a
short amount of time. This is housing welfare, and the taxpayers have to pick
up the tab. Listen closely to obama's acceptance speech,and ask how are we
going to pay for all the promises he made?
Didn't do it to herself? | 6:16 a.m. Aug. 31, 2008
Helping someone else buy a home is one of the worst money decisions you can ever
make. Cosigning on any loan effectively makes you responsible for it, so in this
story she did do it to herself.
Her fault | 6:36 a.m. Aug. 31, 2008
She did get herself into this mess - She bought a house she couldn't afford
and she signed a mortgage that she knew she wouldn't be able to afford
within 5 years.
House you can't afford? | 7:20 a.m. Aug. 31, 2008
How do you determine when you are buying too much house? If someone made $50k/yr
and bought a $200k house and provided a small down payment that is relativaly
conservative. If someone made $100k/yr and bought a $400k house, that too is
relatively conservative. If they both lost their jobs, is it reasonable to say
one bought too much house?
Re: GoodGuyGary | 7:28 a.m. Aug. 31, 2008
$80K per year and can't afford a house? Either you are holding out for
something out of your price range as well or not being very smart with your
money...
People buy homes because rent money is money down the drain. Granted, people buy homes out of their own price range to live in upscale neighborhoods or simply because the have tastes well beyond what they make. However, $80K a year and can't afford a house is sloppy money management.
People buy homes because rent money is money down the drain. Granted, people buy homes out of their own price range to live in upscale neighborhoods or simply because the have tastes well beyond what they make. However, $80K a year and can't afford a house is sloppy money management.
My Neighbor | 7:42 a.m. Aug. 31, 2008
This article failed to mention the difficult position the rest of us are put in
when a nearby house goes into foreclosure.
My neighbor didn't work for years because of some bad decisions that led to trouble with the law. He lived off the equity he had in his home. Now he is gone and the home sits empty with huge foreclosure warning signs taped to the front windows and a yard going to ruin.
My home value and the value of homes in my neighborhood is falling because of this blight and his poor choices.
As many posts have previously mentioned, the poor decisions of others always seem to have have some impact on those of us who try to be responsible. Bummer...
My neighbor didn't work for years because of some bad decisions that led to trouble with the law. He lived off the equity he had in his home. Now he is gone and the home sits empty with huge foreclosure warning signs taped to the front windows and a yard going to ruin.
My home value and the value of homes in my neighborhood is falling because of this blight and his poor choices.
As many posts have previously mentioned, the poor decisions of others always seem to have have some impact on those of us who try to be responsible. Bummer...
My Sister and her Husband | 7:52 a.m. Aug. 31, 2008
My sister and her husband have insisted on living beyond their means all their
married life and before. Each of them went into marriage with well over 10
thousand in credit card debt. After marriage, they went to fancy resturants,
bought expensive clothes, went on numerious vacations and then went into
bankrupsy and lost a condo.
Since then they bought a house they can't afford, and are about to lose that too.
I have tried talking to both of them about how to handle money, they appear to agree with what I say, then go and do the same thing.
As a result of their stupidity, their kids have a much less sense of security and they are going through a lot of stress.
I have a hard time seeing how two people can be so dumb, especially when one of them is related to me.
Since then they bought a house they can't afford, and are about to lose that too.
I have tried talking to both of them about how to handle money, they appear to agree with what I say, then go and do the same thing.
As a result of their stupidity, their kids have a much less sense of security and they are going through a lot of stress.
I have a hard time seeing how two people can be so dumb, especially when one of them is related to me.
No Contingency Plan? | 8:05 a.m. Aug. 31, 2008
We live in an old forlorn house. I would love to move to a bigger, newer house
but because my job is uncertain, we stay put. We've built up enough savings
so that if I lose my job we can still make mortgage payments for 3 years. 36
payments.
Losing your job should not be an excuse for foreclosure. Mortgages are for 30 years, while people on average change their careers (not jobs, careers) 4 times in their life. If you can't make a couple of mortgage payments without a job, you bought too much house.
Maybe a reporter should come to my shabby old house, and write about my small bathrooms, my old linoleum floors and my lack of air conditioning. You could call it "Faces of Financial Responsibility."
Losing your job should not be an excuse for foreclosure. Mortgages are for 30 years, while people on average change their careers (not jobs, careers) 4 times in their life. If you can't make a couple of mortgage payments without a job, you bought too much house.
Maybe a reporter should come to my shabby old house, and write about my small bathrooms, my old linoleum floors and my lack of air conditioning. You could call it "Faces of Financial Responsibility."
Dear My Sister and her Brother | 8:31 a.m. Aug. 31, 2008
Thanks for sharing in this public forum. What a numbscull.
Foolish and Silly Americans | 8:36 a.m. Aug. 31, 2008
Jobs are iffy, house payments are for 30 years. People are being irresponsible
if they don't buy LESS house they can afford and then save the difference
for an emergency. One should be out of debt and have an emergency fund BEFORE
buying a house.
I know of people who the husband AND the wife have to keep their job or they can't afford to make the payment.
Too many Americans insist on living to near their means, then when unfortunate circumstances strike, they are not prepared.
We have many silly and foolish people here in America.
I know of people who the husband AND the wife have to keep their job or they can't afford to make the payment.
Too many Americans insist on living to near their means, then when unfortunate circumstances strike, they are not prepared.
We have many silly and foolish people here in America.
Re Re GoodGuyGary | 9:12 a.m. Aug. 31, 2008
If you think rent is throwing money down the drain right now, try home
ownership. The value lost on homes per month for the next year and a half in
SLC will be around 0.75% per month...using a median price of $275k that is just
over $2k per month. This does not include your monthly P&I payment of which
most is rent anyway (see interest expense). So guess what....rent becomes
pretty cheap when you consider the alternative ina bloated market.
Foreclosure #'s | 9:16 a.m. Aug. 31, 2008
SL County had record sales years of ~18,000 homes annually in 2005 and 2006.
According to the article ~13,000 homes will go into foreclosure. It looks to me
as if the inventories will continue to build putting even greater downward
pressure on home price and having a snowball effect on more foreclosure. When
the finally tally is counted in 2009 my guess would be the number will be closer
to 20,000, not 13,000.
Real Culprit | 9:24 a.m. Aug. 31, 2008
Most folks are unaware of the REAL events. You see, Banks make money when they
lend, so they are encouraged to lend, lend, lend....often stupidly. It's a
laugh to think they believe they are acting fiduciarily responsible with
investor money (yes, your deposits into a bank are investments)when they lend to
unworthy borrowers who have a history of not paying their obligations. Our
housing crisis is a result of banks creating lending programs that generated
millions of loans, which when bulked together into portfolios and securitized,
were then insured by secondary insurance (AAA rated mind you) and then sold on
the stock market as worthy investments. What frustrates me as an investor is
how our government allows for private decision making like this to be backed by
public accountability. Who are to blame are the greedy bankers, product
developers, underwriters, insurers, securities brokers, investors and every
unworthy borrower who jumped into a loan when they didn't have the money -
who stated they were making more money than they really were. The remedy is
TRUTH and HONESTY. It will get fixed..in time. Will we learn? Will we avoid
this in the future? I sure hope so.
GoodGuyGary | 9:28 a.m. Aug. 31, 2008
I didn't say I cannot afford a house, I said I don't dare to buy a
house. With all the news about the market coming down, I really don't dare
to make the decision.
David Wyllie | 9:32 a.m. Aug. 31, 2008
I think it is a telling comment on much of what is behind the current mortgage
meltdown that Lisa Eddy's son, for whom she co-signed a loan, never made a
single payment. Surely this was not the fault of some faceless 'mortgage
broker' but rather the fault of mother who was blind to her own son's
character and capabilities.
Its not Rocket Science | 9:54 a.m. Aug. 31, 2008
re House you can't afford? 7:20 a.m. Aug. 31, 2008
"How do you determine when you are buying too much house"?
Jees, I don't know how one might possibly do this, it seems pretty much like rocket science, above the ability of most mere mortals.
You might start by realizing that there might be bad times ahead, so you get yourself out of debt BEFORE you buy a house and have an emergency fund in place BEFORE too.
Then you buy less house than you can afford, not more than you could well afford if you lost your current job and had to replace it. Because you buy less house than you can afford, you continue to add to the emergency fund.
This seems like rocket science to too many Americans I realize who have no financial sense, but there is no excuse for being financially dumb.
"How do you determine when you are buying too much house"?
Jees, I don't know how one might possibly do this, it seems pretty much like rocket science, above the ability of most mere mortals.
You might start by realizing that there might be bad times ahead, so you get yourself out of debt BEFORE you buy a house and have an emergency fund in place BEFORE too.
Then you buy less house than you can afford, not more than you could well afford if you lost your current job and had to replace it. Because you buy less house than you can afford, you continue to add to the emergency fund.
This seems like rocket science to too many Americans I realize who have no financial sense, but there is no excuse for being financially dumb.
Mossback George | 9:59 a.m. Aug. 31, 2008
I am very sympathetic to those who are losing their homes. What a terribly
stressful situation. What a great lesson for all of us: This country's set
up so that we can make the choices to run our own lives. It's awesome when
it works out for the good but when it doesn't, the consequences really
hurt.
I'm grateful it's that way. I've learned lessons from both good and bad choices in my life and the bad choices have especially taught me well because they hurt so much. I got up and started making the right choices instead. Thank heaven I was held accountable! Otherwise I wouldn't have learned what I did.
If a person will lose their home because of poor choices (too trusting, eyes bigger than the wallet, etc.) then learn and keep moving on. Other tax payers shouldn't be expected to help, especially when so many people were careful about their finances.
Lisa Eddy and others who face this need much support from friends and family. But keep working and things work out.
And if Lisa Eddy's son's reading this: You'd better have been in a coma. Otherwise shame on you for never making a payment.
I'm grateful it's that way. I've learned lessons from both good and bad choices in my life and the bad choices have especially taught me well because they hurt so much. I got up and started making the right choices instead. Thank heaven I was held accountable! Otherwise I wouldn't have learned what I did.
If a person will lose their home because of poor choices (too trusting, eyes bigger than the wallet, etc.) then learn and keep moving on. Other tax payers shouldn't be expected to help, especially when so many people were careful about their finances.
Lisa Eddy and others who face this need much support from friends and family. But keep working and things work out.
And if Lisa Eddy's son's reading this: You'd better have been in a coma. Otherwise shame on you for never making a payment.
Anonymous | 10:42 a.m. Aug. 31, 2008
My husband and I are in the mid 40's. We were married before and thanks
divorce, both didn't have a house. We made 80K average per year. We could
afford a house but I agree with Gary, we don't dare to do so. First, we
would be paying for a over priced house. Second, we would need a big house that
in 3 years, we won't need anymore because kids will be out. Also, we are
getting old so we know that in 15 years we won't be receiving the same
income as now, and instead, we would be paying a mortgage for a large house we
don't need. And when I read stories like these, I am actually glad I am
renting for now.
conservative? | 10:47 a.m. Aug. 31, 2008
That anyone would suggest buying a $200k home with a small down payment and a
$50k/year income is "conservative" belies the true problem.
Itchy | 11:06 a.m. Aug. 31, 2008
10 years ago homes in my neighborhood went for $140k. Within 4 years they were
going for over 200k. They have risen a bit more slowly since and $230k has been
the norm. With the current economy you would think they'd drop. Well a
neighbor just put up their small 4 bdr, 1,1/2 bath on a tiny lot for $234,000.
Elsewhere this home would have a value of maybe 110k. After WW2 they built small
homes for the common man. Today builders only build mansions. Why? Because for
an additional 20k investment in construction they get an extra 80k.
Who is fooling and who is getting fooled?
Who is fooling and who is getting fooled?
lynn | 11:12 a.m. Aug. 31, 2008
After reading all the comments posted, it's good to know that all the above
have paid off their own mortgages or paid cash for their homes. Such wisdom, but
if you owe anything to anybody..your in the same boat.
Dont feel bad at all | 11:33 a.m. Aug. 31, 2008
She should have known her son was a deadbeat. They should have a big picture of
her sons face on the article so we all know who he is. In 5 years when the rate
adjusts she will be in the same position as now, but the governemnt (taxpayers)
will probably bail her out.
All you renters | 12:00 p.m. Aug. 31, 2008
Boy, if ever you do think it wise to buy a house now is the time!
There are houses all over the market for below actual construction cost.
Here is what has happened...
The lending industry (the devil) allowed sub-prime lending for years now. They gave a $400K loan to someone that "said" they made a lot of money (didn't have to document). Human nature... greed... motivated peopel to do so. Then, earlier this year, the lending industry (for selfish reasons) pulled the rug out from under anyone in the system. I am the first to agree a changed was needed (should have never happened). But, to eliminate programs/loans that people were approved for just months earlier (leading them to activate a construction loan) and leaving them no way to obtain long term financing was HUGELY irresponsible and I believe their actions to be a major part of the foreclosure problems we now face. Yes, people will be greedy if allowed to be. People need protecting from themselves sometimes too!
So, a home that cost $400K to build that would have appraised for $480K is now appraised at $350K and you can purchase $50K under cost of construction! Go buy!
There are houses all over the market for below actual construction cost.
Here is what has happened...
The lending industry (the devil) allowed sub-prime lending for years now. They gave a $400K loan to someone that "said" they made a lot of money (didn't have to document). Human nature... greed... motivated peopel to do so. Then, earlier this year, the lending industry (for selfish reasons) pulled the rug out from under anyone in the system. I am the first to agree a changed was needed (should have never happened). But, to eliminate programs/loans that people were approved for just months earlier (leading them to activate a construction loan) and leaving them no way to obtain long term financing was HUGELY irresponsible and I believe their actions to be a major part of the foreclosure problems we now face. Yes, people will be greedy if allowed to be. People need protecting from themselves sometimes too!
So, a home that cost $400K to build that would have appraised for $480K is now appraised at $350K and you can purchase $50K under cost of construction! Go buy!
Re: Her fault but I'm paying! | 12:46 p.m. Aug. 31, 2008
I think the reason you don't have a home is because your just lazy. Why
don't you quit making excuses and go out and start earning enough money to
buy a home. In fact, because you don't earn enough to qualify for a home
you are a drag on the economy because you don't make enough to put back
into the system. I don't feel sorry for you one bit. I'm tired of
covering for the lazy and unproductive who just take and don't give
back.
By the way who is going to be changing your diapers in your old age? Because of your low income status you most likely are going to pass on that cost to the rest of us. Shame on YOU!
People who live in glass houses should not throw stones. Bad things do happen to good and responsible people. There are no perfect decision makers on this planet including you. Your day is coming.
By the way who is going to be changing your diapers in your old age? Because of your low income status you most likely are going to pass on that cost to the rest of us. Shame on YOU!
People who live in glass houses should not throw stones. Bad things do happen to good and responsible people. There are no perfect decision makers on this planet including you. Your day is coming.
Red Smith | 1:17 p.m. Aug. 31, 2008
Houses are just over priced. How coulddry wall, paint, wires, and windows cost
so much?
No house is worth more than $100,000.
New houses come with roofs that last 20 years, wiring so small the circuit pop with a toaster.
There is plenty of land. 75% of Utah is government owned. Release the land and home prices would go down. Poverty is a creation of the government. People are not lazy in general, but those who work don't get to keep their work.
There is no real solution to man's inhumanity to man until we have a woman for a president.
No house is worth more than $100,000.
New houses come with roofs that last 20 years, wiring so small the circuit pop with a toaster.
There is plenty of land. 75% of Utah is government owned. Release the land and home prices would go down. Poverty is a creation of the government. People are not lazy in general, but those who work don't get to keep their work.
There is no real solution to man's inhumanity to man until we have a woman for a president.
O what fun | 1:43 p.m. Aug. 31, 2008
People just don't get it.
The problem with being able too "afford" a home isn't about how much you make (mostly). It's about what you do with the money you make... It's about your ability to not spend everything you make on doo dads and services of no lasting value. It's also not wise to spend half of everything you make on your mortgage payments.
Some of the commenters earlier hit it dead on. You shouldn't buy a house until you have an emergency fund set up. Also the more money you put down, the less your required monthly payment will be, especially that first 20% where mortgage insurance is required.
If you make $80,000 a year you should have no problem saving enough to make a 20% down payment on a house. With a 20% down payment your mortgage payment will be less than the cost of renting that same house, and in 30 years (or hopefully less). You will actually own the house and no payment will be required. In 20 years that $800 payment will be nothing.
Learn to save people. Don't eat out so much, buy old cars, drive less, shop at walmart, etc....
The problem with being able too "afford" a home isn't about how much you make (mostly). It's about what you do with the money you make... It's about your ability to not spend everything you make on doo dads and services of no lasting value. It's also not wise to spend half of everything you make on your mortgage payments.
Some of the commenters earlier hit it dead on. You shouldn't buy a house until you have an emergency fund set up. Also the more money you put down, the less your required monthly payment will be, especially that first 20% where mortgage insurance is required.
If you make $80,000 a year you should have no problem saving enough to make a 20% down payment on a house. With a 20% down payment your mortgage payment will be less than the cost of renting that same house, and in 30 years (or hopefully less). You will actually own the house and no payment will be required. In 20 years that $800 payment will be nothing.
Learn to save people. Don't eat out so much, buy old cars, drive less, shop at walmart, etc....
John in Bountiful | 1:44 p.m. Aug. 31, 2008
This foreclosure problem is a stunning phenomenon. I am now nearly 60 years of
age and have lived and sometimes struggled through difficult economic times. I
have never seen a more difficult time than now. Most would consider our
neighborhood as fairly affluent, but I can tell you that a surprising number
within our church congregation are struggling, and I mean struggling
financially. Children unable to go to college, wives having to go to work,
SERIOUS marital problems, "comfort" medicines being prescribed like
never before...at least 2 to 3 new families a month are discussing losing their
homes within our congregation. And the worst news is, the future looks even
worse.
Franklin Squires | 3:08 p.m. Aug. 31, 2008
When is the Deseret News going to do a real story on foreclosures in Utah and
talk about the people who got scammed into buying homes with their good credit
scores from Franklin Squires? Everyone has a sob story. Most people don't
get ripped off.
SLC | 3:11 p.m. Aug. 31, 2008
We as a couple earn just into the six figures and have no children. We rent.
Everyone seems to judge us, or they're personally offended that we
didn't buy because they assume we disagree with it. Truth is, we do
disagree. We rent, not because we can't afford a house, obviously. But
because we look at what a modest 2 or 3 bedroom home costs, and think NO. Sorry,
in our opinion, sellers want to rake in a hefty profit, but turn over the keys
to a measly property. Measly property: FINE BY ME, less to clean, less to heat
and cool!!! But excuse me, I expect a measly mortgage payment to go along with
it. Obviously, plenty of other people didn't seem to think the prices were
too high. They just closed their eyes, signed on the line, and moved in. Because
some bully told them they were throwing money away. Tell me, what do you think
about INTEREST? It's rent you pay the bank. Even with 25% back in taxes.
These cheater mortgages wouldn't have been necessary if home prices were in line with incomes here (3 or 3.5 x median income).
These cheater mortgages wouldn't have been necessary if home prices were in line with incomes here (3 or 3.5 x median income).
re All you Renters | 3:46 p.m. Aug. 31, 2008
Are you serious? One of the largest costs in a purchase is the land which by
the way is going way down...materials are following as demand has dried up...and
guess what labor supply is way up with little demand so you got it costs are
going down there as well. If you were suckered by the argument that you
can't build it for this price I am sorry.
Anonymous | 4:25 p.m. Aug. 31, 2008
Get a Job
Clare | 4:29 p.m. Aug. 31, 2008
My husband and I have lived in our little house for about 15 years. It's
not fancy, but it serves our needs. We have a family down the street who have
four chldren and live in a home not much larger than ours. I'm sure the
house it paid off, and I'm sure they could have afforded a nice, fancey,
expensive house with an acre of land. They have chosen not to and because of
that they have financial security and their children are not spoiled rotten. My
mother teases me and says we'll probably stay in the same house until we
die. Works for me!
k people | 5:15 p.m. Aug. 31, 2008
I am a 23 year old accountant who bought my first home a year ago and even
though the economy has gone to crap I still have been able to make it through.
My mortgage is about $500 more a month than my last rent, but guess what? I can
put those interest payments down as itemized deductions and therefore in the
long run I am actually moving foward, aka building equity.
Bob in Ohio | 5:28 p.m. Aug. 31, 2008
Many foreclosures are caused by "predatory lenders" and
unrealistically high appraisals. Buyers are told they have to raise their loan
amount to decrease their debt ratio. The buyers want to buy a home so badly,
they sign for a loan they can't possibly pay. Then they can't sell
the house because it is overvalued-most do not know about this problem. One
thing to consider in Utah, the average home is listed about $250,000 in Salt
Lake, but here in Beavercreek, OH, you can buy a very nice house for that price.
Also, wages are comparatively low in Utah compared to Ohio. When I graduated
from BYU in engineering, most moved out of the state because their were few jobs
and the wages were so low. My house is about $175,000 here, but here $80,000
household income (low for this area) would not be comfortable for $250,000. It
appears that some in Utah may be in a tenuous position at $80,000 even with good
financial habits-more buyer education is needed. Unless you have savings-no room
for error. (A really nice house 2-doors down just sold for $213,000)
Penny Murphy | 5:38 p.m. Aug. 31, 2008
To those of you who are so rude, may you walk in other's shoes. I have
lived in my home for 38 years, but after my widowed mother, who was living with
me, passed away, I had to pay back the reverse mortgage on my home. I survived a
divorce, raised three kids, survived heart failure, and just got laid off from a
job I had for several years. I live on soc. sec. and two small retirement
checks. I am 66 years old, so don't tell me it is "My own fault."
Be careful. What goes around comes around.
Bob in Ohio 2 | 5:47 p.m. Aug. 31, 2008
After looking at other foreclosure comments, it seems that high property values
and lower wages in Utah may be a big factor in the forclosures. Also, buyers
need more education to avoid these mistakes. I think people need to look at
their financial position and decide what is realistic. Predatory lemders and
unusal medical bills are common all over the country in this foreclosure
problem.
To: "Fault" @ 12:46 | 5:51 p.m. Aug. 31, 2008
Not everyone, especially those with health issues,
is able to make much $$.
Show some mercy!! Your attitude is very Judgemental
and lacks basic Christian virtue.
Show some UNDERSTANDING! Your health may fail some day or maybe some drunk will run into you and limit your abilities to physically function enough to make
a normal wage.
Judge Not, that ye not be judge.
is able to make much $$.
Show some mercy!! Your attitude is very Judgemental
and lacks basic Christian virtue.
Show some UNDERSTANDING! Your health may fail some day or maybe some drunk will run into you and limit your abilities to physically function enough to make
a normal wage.
Judge Not, that ye not be judge.
RE: SLC | 6:05 p.m. Aug. 31, 2008
You are totally correct. Renting is much better than buying at these prices.
They will have to come down another %50 to even start to look attractive.
The problem is people believing they deserve to live in a house funded by other people's money. When they have saved up enough for a LARGE down payment, or even pay it off with cash, then they can talk about losing THEIR house. Until then it is not THEIR house to lose and they should stop acting like it is. You have to have some skin in the game before you can lose anything.
The problem is people believing they deserve to live in a house funded by other people's money. When they have saved up enough for a LARGE down payment, or even pay it off with cash, then they can talk about losing THEIR house. Until then it is not THEIR house to lose and they should stop acting like it is. You have to have some skin in the game before you can lose anything.
The solution | 6:53 p.m. Aug. 31, 2008
is hiding in plain sight.
How much does it cost to build a basic, functuional homefor a family of four?
How much does the home sell for after construction?
How much does it sell for when the first owner sells and desires a profit on the transaction? (especially if you throw in a realtor, etc. etc.)
How much does it sell for when the second owner does the same?
Repeat this process for a few decades.
The costs and artificial value (every price is an artificial, man-made value assigned to a good) of the home increase and increase and increase and increase. Wages can't possibly compete without widespread inflation, which only compounds the economic woes for everyone.
The real monters in the closet are the same monsters that have always been there: Money, Greed, and Pride.
Building materials are expensive because people want McMansions and Spacious Palaces to show how wildly successful and blessed they are because of their hard work. We're so busy pattting ourselves on the back that we are ruining the American Dream for everyone but the seriously wealthy, but it would be un-American to reverse that trend, so we don't.
Tell me if I'm wrong.
How much does it cost to build a basic, functuional homefor a family of four?
How much does the home sell for after construction?
How much does it sell for when the first owner sells and desires a profit on the transaction? (especially if you throw in a realtor, etc. etc.)
How much does it sell for when the second owner does the same?
Repeat this process for a few decades.
The costs and artificial value (every price is an artificial, man-made value assigned to a good) of the home increase and increase and increase and increase. Wages can't possibly compete without widespread inflation, which only compounds the economic woes for everyone.
The real monters in the closet are the same monsters that have always been there: Money, Greed, and Pride.
Building materials are expensive because people want McMansions and Spacious Palaces to show how wildly successful and blessed they are because of their hard work. We're so busy pattting ourselves on the back that we are ruining the American Dream for everyone but the seriously wealthy, but it would be un-American to reverse that trend, so we don't.
Tell me if I'm wrong.
anon | 7:44 p.m. Aug. 31, 2008
I am going to go kiss my husband right now. For years he has insisted that we
live frugally, that we not go into debt for anything, that we "put up"
with bathrooms and a kitchen straight out of the 50's until we could afford
to fix them up. Our house (bought in the late 80's) has a payment of
around $400 and will be paid off next September. Now our children have grown, I
have gone back to work and we are fixing up the house as we can afford it. I
sleep easy at night. Some people have teased him about being "cheap,"
but I think he has the last laugh. Many people could take a lesson...
Root Cause | 8:17 p.m. Aug. 31, 2008
The root cause of the housing bubble was greed. Lenders & speculators
trying to make a lot of "easy" money. The problem was buyer
confidence got too high and many average people got suckered into the "you
can't lose" mentality. Much of our country's recent business
"success" was built on leveraged debt with inflated valuation.
It's like measuring the intensity of a fire by the size of the flame
instead of the heat being irradiated. A bunch of crinkled up newspapers make a
fire look big, but substantial heat comes from better sources of fuel.
Don't be deceived into thinking your home is worth a lot of money. Money
has just become worth-less.
John | 9:33 p.m. Aug. 31, 2008
I'll admit, I read the first 3 comments and skipped the rest. How
Christian of you to feel no sympathy for these people.
The biggest problem is that public education is broken. To graduate high school, you have to learn all about fuedalism, the Dark Ages, the Renaissance, etc. How useful. But no one is required to take a basic class on finances. Same with college. Sure, I learned about Plato, Virgil, Chaucer, etc. But what good is that?
I luckily got a degree in accounting, so when I bought my first home last year, I knew the bank was just whistling dixie when they told me I could afford more home than I wanted (and really could afford, quite frankly). But the average Joe has no reason NOT to question the bank.
Education in this nation has the wrong priorities and is broken, even on the advanced degree level. Time for reform. In the meantime, don't be so hard on people. They trusted the bank because they had no reason not to.
The biggest problem is that public education is broken. To graduate high school, you have to learn all about fuedalism, the Dark Ages, the Renaissance, etc. How useful. But no one is required to take a basic class on finances. Same with college. Sure, I learned about Plato, Virgil, Chaucer, etc. But what good is that?
I luckily got a degree in accounting, so when I bought my first home last year, I knew the bank was just whistling dixie when they told me I could afford more home than I wanted (and really could afford, quite frankly). But the average Joe has no reason NOT to question the bank.
Education in this nation has the wrong priorities and is broken, even on the advanced degree level. Time for reform. In the meantime, don't be so hard on people. They trusted the bank because they had no reason not to.
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What is even worse is that I am in that middle income range where I have to pay taxes can't afford a home in Utah - thereby not getting the large tax deduction. In effect, I am paying for her stupidity or dishonesty. Shame on her and people like her. People like me are tired of bailing people like her out! Be responsible and pay your debts!