| Posted By |
Message |
| Pages: [1] 2 |
sunnyplus3
:)
Member since 11/05 8749 total posts
Name:
|
cover of newsday today-foreclosures
this article talks about what is happening to average people on LI & how things are changing & will get worse before getting better. I've been predicting this & debating here about it for over a year.
It really s ucks that people will loose their homes, but it is happening.
|
Posted 12/17/06 11:47 AM  |
| |
|
Prudential Douglas Elliman Real Estate
Long Island's Largest Bridal Resource | Long Island Weddings |
|
|
Re: cover of newsday today-foreclosures
It's sad, but not surprising. Especially for young couples in entry level jobs- how do you swing a $300k+ house? We could barely have done it, and we have a pretty good combined income.
|
| Posted 12/17/06 12:11 PM |
| |
|
SweetestOfPeas
J'taime Paris!
Member since 3/06 32345 total posts
Name:
|
Re: cover of newsday today-foreclosures
I feel awful for anyone who is going to lose their house  that is terrible!
but I can't say I am shocked by this news. people are over-extended to the hilt! sad
it used to be that people spent 1/3 of their income on their mortgage. around here it's probably 1/2 on average.
Message edited 12/17/2006 12:18:20 PM.
|
| Posted 12/17/06 12:17 PM |
| |
|
skew
LIF Adult
Member since 5/05 6794 total posts
Name:
|
Re: cover of newsday today-foreclosures
i am not at all shocked and can't say that i really sympathize. people REALLY need to use common sense when purchasing a home. many feel that a large new home increases their status when in reality they are living paycheck to paycheck. all smoke and mirrors and as we see now, they are really suffering from their poor decisions. simple solutuion, if you CANNOT afford it, DON'T buy it.
of course this may not apply to all and yes for those that it does not, i do feel sorry.
Message edited 12/17/2006 1:19:20 PM.
|
| Posted 12/17/06 1:18 PM |
| |
|
Faithx2
All good things in 2016!!
Member since 8/05 20181 total posts
Name:
|
Re: cover of newsday today-foreclosures
I read the article as well. I do feel bad for them. But I also think it's important go into a home that you can afford and have a good gameplan ie: mortgage disabililty, life ins to pay off the house in case your spouse passes away, a 529 for childrens college tuiton etc. I think some of these people have made very poor financial decisions.
|
| Posted 12/17/06 1:34 PM |
| |
|
neenie
Member since 5/05 22351 total posts
Name:
|
Re: cover of newsday today-foreclosures
Posted by skew
i am not at all shocked and can't say that i really sympathize. people REALLY need to use common sense when purchasing a home. many feel that a large new home increases their status when in reality they are living paycheck to paycheck. all smoke and mirrors and as we see now, they are really suffering from their poor decisions. simple solutuion, if you CANNOT afford it, DON'T buy it.
of course this may not apply to all and yes for those that it does not, i do feel sorry.
i totally agree.
i feel bad for anyone that loses their house, but most of these people had no place buying at the prices they did.. and all their actions did was create that competitiveness to enable those asking prices to continue. It was bad decision making, and unfortunately, now it's going to come back to kick them in the azz 
|
| Posted 12/17/06 2:00 PM |
| |
|
Gertyrae
Peace out Homies!
Member since 5/05 20046 total posts
Name:
Gerty ®
|
Re: cover of newsday today-foreclosures
I read the article also but I thought the people they used for examples were not good choices. They were all people who had some sort of malady hit the family. One woman lost her job, a couple went on disability, etc. One of those couples had been in their house for over 20 years and, unfortunately, both ended up on disability at the same time. I don't think that this is a realistic sampling of the foreclosures going on.
I do, however, agree that most recent homebuyers got in over their heads and took on more than they could afford and that this is why there are so many foreclosures. Of course, the mortgage brokers are partly to blame for this also since they convince people that they can afford a more expensive home. We were preapproved up to $400K and there is no way we could have afforded a $3000 mortgage - so we bought a less expensive home and put off repairs for a while.
|
| Posted 12/17/06 5:43 PM |
| |
|
rose825
Best Friends
Member since 6/05 10228 total posts
Name:
|
Re: cover of newsday today-foreclosures
Posted by Gertyrae
Of course, the mortgage brokers are partly to blame for this also since they convince people that they can afford a more expensive home. We were preapproved up to $400K and there is no way we could have afforded a $3000 mortgage - so we bought a less expensive home and put off repairs for a while.
I agree, we were approved for up to 500K and there is NO WAY we could afford that. But if I wasnt a level headed person I would have jumped right in. And I would be miserable right now.
|
| Posted 12/17/06 7:35 PM |
| |
|
|
|
Re: cover of newsday today-foreclosures
Posted by Gertyrae
We were preapproved up to $400K and there is no way we could have afforded a $3000 mortgage - so we bought a less expensive home and put off repairs for a while.
While DH and I didn't plan to buy on LI, we found the same thing, that we were able to get pre-approved for a lot more than we were comfortable with. It bugged me that the mortgage person I spoke with tried to convince me otherwise, because we'd played with the numbers ourselves.
I think the people who do mortgages (and I know it's not all of them) and encourge people to borrow more than they can afford are partly to blame too- the few I dealt with seemed more interested in closing the deal than whether or not the situation was realistic and I think it's important for buyers to realize that they have to do the math themselves, and not count on a mortgage person to do their financial planning. But I think with the LI market being what it is, combined with the dream of owning a home, sucks in lots of people when they're told by someone who knows mortgages that they can afford a certain amount, even if it's too much.
|
| Posted 12/17/06 7:39 PM |
| |
|
Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
|
Re: cover of newsday today-foreclosures
Posted by rose825
Posted by Gertyrae
Of course, the mortgage brokers are partly to blame for this also since they convince people that they can afford a more expensive home. ]
banks approve people- not brokers
you have to take some personal responibilty - and many people LIE about there credit situation, other bills and obligations
they do it to themselves- b/c they want to believe they can afford it- and they want it- "buy now - pay later" the American Way
|
| Posted 12/17/06 7:49 PM |
| |
|
alnem
This is gonna be a good year!
Member since 2/06 9562 total posts
Name:
Emily
|
Re: cover of newsday today-foreclosures
sad to say but it was inevitable. i worked with a buyer last year who told me they were looking up to $600k and wanted 100% financing! and believe me, he wasnt alone. so many mortgage brokers/bankers will tell you that you can do 100% financing with no problem just to get the loan from you. but when you go into foreclosure, they're certainly not around to help out. i always advise first time buyers to put down as much as possible or to buy a house with some kind of rental income to help subsidize the mortgage payment.
Message edited 12/17/2006 8:02:42 PM.
|
| Posted 12/17/06 8:01 PM |
| |
|
ckone
LIF Adult
Member since 8/06 3014 total posts
Name:
|
Re: cover of newsday today-foreclosures
Posted by neenie
Posted by skew
i am not at all shocked and can't say that i really sympathize. people REALLY need to use common sense when purchasing a home. many feel that a large new home increases their status when in reality they are living paycheck to paycheck. all smoke and mirrors and as we see now, they are really suffering from their poor decisions. simple solutuion, if you CANNOT afford it, DON'T buy it.
of course this may not apply to all and yes for those that it does not, i do feel sorry.
i totally agree.
i feel bad for anyone that loses their house, but most of these people had no place buying at the prices they did.. and all their actions did was create that competitiveness to enable those asking prices to continue. It was bad decision making, and unfortunately, now it's going to come back to kick them in the azz
Like myself, it's not always the home price - it's the bad mortgage and lack of knowledge or guidence. I could afford the home (not out of my range)- I can't afford to refinance or the terrible mortgage that I really did get talked into by the broker that I trusted (and was referred to us). I though that I was making a good decision but now am sick over it all of the time.
Message edited 12/17/2006 8:20:00 PM.
|
| Posted 12/17/06 8:18 PM |
| |
|
SweetestOfPeas
J'taime Paris!
Member since 3/06 32345 total posts
Name:
|
Re: cover of newsday today-foreclosures
I read the article myself this evening and what also scares me is that LI's economy grew at a rate of 1900 jobs in the last year! that is HORRIBLE! I think the rate was 2%. sub standard at best.
no wonder people are leaving here in droves. cost of living increases here every year and salaries are no where near what they should be in order to keep up.
|
| Posted 12/17/06 8:26 PM |
| |
|
hazeleyes33
LIF Adult
Member since 5/05 13060 total posts
Name:
Ginger
|
Re: cover of newsday today-foreclosures
I think people get way over their heads. When we went for our house, our mortgage was double our salary. That is how they figured it out.
YOU have to figure out how much you can afford. You can not leave that in someone's hands who is there to make money off of you.
Yes, we live in a "starter" home and will until we retire because we are want to know we can afford our mortgage and utilities. It's amazing how spoiled people are that they actually have to call homes "starter homes". The majority of them can not afford to trade up but do and not realize that not only does the mortgage and taxes go up but so do their utilities.
|
| Posted 12/17/06 9:18 PM |
| |
|
MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
|
Re: cover of newsday today-foreclosures
i was pre approved for almost $100K more than what I was comfortable with. its ridiculous - but i dont blame all the brokers - people need to know what they are getting themselves into and educate themselves - go to a homebuyer class given by the LIDC or another government agency - dont take the advice of someone who makes money off of you!
some people need to stop being the victims and own up to what they got themselves into (and im not talking about people who have astronomical medical bills or a spouse died)
|
| Posted 12/17/06 9:29 PM |
| |
|
MrsM-6-7-08
<3
Member since 8/06 4249 total posts
Name:
Nicole
|
Re: cover of newsday today-foreclosures
The banks approve people for way more than they can afford. When people cant pay, the banks make out like bandits!
Its really sad and unfortunate
|
| Posted 12/17/06 9:34 PM |
| |
|
MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
|
Re: cover of newsday today-foreclosures
Posted by stinkysmom80
When people cant pay, the banks make out like bandits!
absolutely not true. the LAST thing a bank wants is a bad loan. if a bank has too many bad loans, they can get fined by the OCC and banned from expanding their business. banks would they have to pay attorneys and real estate agents to sell the house, court proceedings etc.
|
| Posted 12/17/06 9:41 PM |
| |
|
sunnyplus3
:)
Member since 11/05 8749 total posts
Name:
|
Re: cover of newsday today-foreclosures
Posted by Meaghan729
Posted by stinkysmom80
When people cant pay, the banks make out like bandits!
absolutely not true. the LAST thing a bank wants is a bad loan. if a bank has too many bad loans, they can get fined by the OCC and banned from expanding their business. banks would they have to pay attorneys and real estate agents to sell the house, court proceedings etc.
It said right in the article that banks would rather settle for a short sale-which means they take LESS than what is owed on the loan when the house can be sold quickly so they don't have to foreclose. They try to avoid actual foreclosures at all costs. They never make money on those, plus its not in their best interest to own property.
|
| Posted 12/17/06 10:29 PM |
| |
|
csorisi
My 2 LOVES
Member since 11/05 1984 total posts
Name:
Corinne
|
Re: cover of newsday today-foreclosures
I didn't read the article but awhile back when interest rates started going up there was alot on the news about mortgages and people not being able to afford them. The biggest problem is that if you have a variable rate mortgage it could have jumped over the past year or so and although you could have afforded the mortgage when you took it out it is a stretch now that the interest rate has almost double and so has the payment. This happen to me & DH our first payment on our 2nd mortgage was based on the interest rate we were quoted but after the 1st month it jumped and our payment double. We are lucky that we have good jobs and the extra money didn't hurt us that much. After 8 months of that we were just able to refinance on our 2nd mortgage and get out $20,000 and we are paying less than we were paying before. We are now in a better loan that is fixed and can be paid off in less time. We got screwed on our 2nd mortgage but in the end we did what we had to to get out of. There are just some people out there that are in way over their heads, I have seen as a real estate attorney alot of brokers who are screwing people making them believe that they can afford something that they can't and unfortunately some people are in such bad positions that they think it is their only option. I am not saying it is all brokers but from my experience I feel bad for the people that are now stuck in these situations.
|
| Posted 12/17/06 11:36 PM |
| |
|
mcl916
my two loves
Member since 10/06 5133 total posts
Name:
Megan
|
Re: cover of newsday today-foreclosures
I did not see the article, but I will say I am not suprised. All the talk of variable rate mortgages and intrest-only with 100% financing just seemed like a bad idea to me. With the market going crazy I think people thought they had to buy now or never and got way in over their heads. You have to look out for yourself, no banker or broker is going to do that for you! And if you don't know your own budget you shouldn't be purchasing a house.
|
| Posted 12/18/06 8:22 AM |
| |
|
skew
LIF Adult
Member since 5/05 6794 total posts
Name:
|
Re: cover of newsday today-foreclosures
Posted by Meaghan729
i was pre approved for almost $100K more than what I was comfortable with. its ridiculous - but i dont blame all the brokers - people need to know what they are getting themselves into and educate themselves - go to a homebuyer class given by the LIDC or another government agency - dont take the advice of someone who makes money off of you!
some people need to stop being the victims and own up to what they got themselves into (and im not talking about people who have astronomical medical bills or a spouse died)
|
| Posted 12/18/06 8:41 AM |
| |
|
Eleanor
LIF Adult
Member since 2/06 2223 total posts
Name:
Ellie
|
Re: cover of newsday today-foreclosures
Posted by Gertyrae
I read the article also but I thought the people they used for examples were not good choices. They were all people who had some sort of malady hit the family.
I thought the same thing when reading. And how do you own your home for 20 years and not have any equity? that's the problem (not just the new buyers of the last few years) people borrowing from their equity to buy luxuries, etc. Even to get a HEL to pay for college is foolish for most.
I think most of us would be in a pickle if one or both in the couple lost their job, were injured, became sick, etc.
Message edited 12/18/2006 9:09:39 AM.
|
| Posted 12/18/06 8:44 AM |
| |
|
Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
|
Re: cover of newsday today-foreclosures
I couldn't agree more!
|
| Posted 12/18/06 9:26 AM |
| |
|
Waste06
Waste not, want not
Member since 6/06 7219 total posts
Name:
Lois Mom Mommy Mama Ma
|
Re: cover of newsday today-foreclosures
Where are these homebuyer classes given by the LIDC offered? How do I find out more about them?
|
| Posted 12/18/06 10:36 AM |
| |
|
MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
|
Re: cover of newsday today-foreclosures
Posted by Erin0602
Where are these homebuyer classes given by the LIDC offered? How do I find out more about them?
CDCLI
LIHP (this is what i mean, the LIDC is for businesses)
Message edited 12/18/2006 11:05:32 AM.
|
| Posted 12/18/06 11:03 AM |
| |
|
| Pages: [1] 2 |
