203,562 New Listings - Last update: November, 24 2009 - 08:11 AM EST
It is not just hundreds or thousands but millions that will be facing foreclosure in the forthcoming year. There are 2,000 foreclosure victims in New Hampshire alone. Politicians are making all sorts of sounds. Senator Hillary spoke of creating a $1 billion fund. Some steps are being taken like pressurizing the Congress but it hardly scratches the surface.
Economist Brian Gottlob opined that only a small number are the results of predatory lending. These are being quickly dealt with. Other reasons are disappearing jobs and ballooning medical costs. The prime factor has been gullible borrowers falling for smart talking estate agents to go for houses they could ill afford. The bait was initial low interest-only repayments and little or no down payments. But when the grace period was over and the payment schedule was ‘reset’ the situation became impossible. Regulators discovered that the income of the borrowers would not permit them to continue even if the rate was brought down to zero!
Gottlob calculates that for every 10% fall in New Hampshire property prices the foreclosure rate will increase by 80%. But the regional banks are not in trouble, as they did not dole out questionable loans. The staff of New Hampshire banks has gone online and also directly meeting victims through meetings to solve the issue. A look at the asking prices of some of the units appears to be modest. During the last decade foreclosures in New Hampshire have worsened ten times and continue to slide.
A person who has paid for only a year or two on the property cannot rightfully be termed an ‘owner’. The unit has no equity. What the borrower has is a huge debt. Lenders cannot even be located because due to the securitization procedure the mortgage has been sold in bits and pieces abroad. It is inevitably a seesaw of rising interest rates and falling estate prices.
Some websites have been launched specializing in the foreclosure issue.
The tax issue continues to tax people. Should those fighting to stay above water be subjected to taxes? Is it fair and in any way justified to take from the hapless to keep another in luxury? Should an industrious couple working hard to keep foreclosure at bay be made to pay for the security of the single earning family or rescue greedy speculators? The answer is strongly negative.
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2 Responses
[...] the federal programmes would be able to contain foreclosed houses. Craig Vale is one of the many foreclosure victims. He has desperately been trying to be current on his mortgage but had a gut feeling that [...]
I lost my home to foreclosure recently and have to be out on Friday next week . I have no where to go and have 3 dogs. I was legally blind for 8 months and couldn’t work to my full potential. I also had another complication on top of it. I had plenty of equity for the bank to put the balance owed on the other end of the mortgage. They refused and now I will be homeless on Friday. I would give anything in the world to get a second chance to get my home back, This foreclosure problem is going to cause so so many more problems.