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That’s very sad, Ski. I hope your sister is able to work things out! I guess South Jersey is just like everywhere else…there are houses for sale on every block.
Kyrin wrote:I am so glad I have been able to refinance. Otherwise things could get sticky for me in a hurry.
I hope that things work out for everyone else who are having problems.
DM, would it be feasible to sell your condo and get a cheaper place, or would you be taking a loss to sell it now? I seem to recall talking about this once before. I would definately refi, make very sure you pay all your CC on time and your house note…any delinquints could hurt alot, trust me.
Kyrin
I paid $197,000, they are on the market for about $185,000 right now and not selling. I can not sell and take a $20,000 loss and I would not be able to find anything close to livable in this area for what I would get for my place
I need major RAIN and OvertimeWe have priced ourselves out of the housing market.
I hope to know more next week when this woman from Chase calls me back
my nieghbors has that happen. they are out of thier house now and it was supposed to be auctioned off.
ours is not like that. we have a fixed rate…and people are still buying homes(slowly). we think we can get the price we are looking for since we are the only house in town with a 6 car gurauge and a sunroom that has a heater and airconditioner.
I live in Central FL. Luckily, I didn’t refinance with an ARM, so my monthly house payments haven’t changed much. But with the increases in insurance costs, utility costs, gas prices, etc and with having to replace a vehicle and an air conditioner this year (additional monthly payments), the paycheck just doesn’t go as far as it used to. And then at work, they want me to cut down on my OT. Normally, I’d be glad to, but now the OT is paying the bills. I’m also trying to pay down some CCs so I can take a vacation in January with my Mom.
After a visit with my sister and her family in Virgina this past July, Mom and I were going to sell our homes (her in AZ, me in FL) and move to Virginia. Mom is in her 70’s and we’re trying to get her to move closely to someone that can take care of her when she eventually needs it. With the current housing slump, that’s been put on hold too.
It’s the total opposite here in the Toronto area in Canada, and I think same thing in Alberta.
The economy is doing great, and they’re building houses everywhere. The town where I live doubled, if not tripled in size over the last 20 years. Houses keep on going up and up in value. It’s nuts, really.
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http://www.sarahjestin.com/feedbacklists.htmSo its it the interest rates that are causing people to lose their houses? I have fixed rate, too. What are the interest rates climbing to?
In Waterloo they are saying there just isn’t enough million dollar homes! Saddly the gap between rich and poor gets bigger and bigger each year. Soon there will be no middle class. Just rich or poor. 😕
skigod377 wrote:So its it the interest rates that are causing people to lose their houses? I have fixed rate, too. What are the interest rates climbing to?
I’m not sure….I’ll see if I can find out. My brother is in banking. 🙂
dragonmedley wrote:It’s the total opposite here in the Toronto area in Canada, and I think same thing in Alberta.
The economy is doing great, and they’re building houses everywhere. The town where I live doubled, if not tripled in size over the last 20 years. Houses keep on going up and up in value. It’s nuts, really.
Yeah, Toronto is in a growth spurt. There are literally dozens of condo’s going up in our area, but the prices now are insane too for what you’re getting.
I’ve heard on the news that in the U.S. for the Month of September alone there was more than 50% of people defaulting on their home loans and they were going into Foreclosure. I’m waiting for the bubble here in Edmonton to burst a bit more before I buy.
The whole problem is, adjustable rate mortgages are like making a deal with the devil.
They look fantastic, wow, get a house for $200 or $300 less a month than a fixed rate loan. What a deal! Most people are fooled into thinking that the bank is doing something fantastic. They buy in and them BLAM!
Ohh, sorry, what? You didn’t realize your mortgage payment was going to increase by $500 per month when interest rates go up?
Sorry, didn’t you read the fine print? Ohh well, too bad, so sad…now you can declare bankruptcy.
The whole thing is a mess. Banks should be required to make it very clear what you get, when you get an ARM. I truly think most people who are involved in this whole mess are in it because they did not understand what was going to heppen when rates went up.
Many people will do what the lender recommends. A lender says they have this great deal and the customer thinks that the lender must know what is best.
The other thing people need to stay away from is interest only loans. The best thing for potential home owners, is get a fixed rate loan and if interest rates go down, refinance with another fixed rate loan.
I am sorry people are loosing their houses, but you must be very careful in believing any lender and understand that they are not looking out for you. They want to make money and that is the bottom line.
When we have bought or sold homes we do it without a realtor and with a trusted property lawyer. We also don’t do the whole escrow deal (that is another way the banks like to screw people over) but I won’t go on about that.
Be savy and research and talk to a property lawyer before you sign into any agreement.
Good luck to those of you who are facing this and I hope that you and your loved ones find a solution.
It’s bad down there, I hope everyone here is okay. It’s even made the news as a semi regularly here.
In Calgary, the housing market is slowing down but still going like mad. My parents bought this house (afifties bungalow) in the seventies and now it’s worth a million dollars. Which is odd cause it’s so old and needs so many upgrades anyone who bought it would just tear it down and build new. Though it’s great for my brother-in-law since he’s a house framer
It’s not just the ARM.
People who would not have been able to afford a mortgage bought into Intrest Only Loans. Problem was that they would have to negotiate the interest rate in 3-5 years. So while three years ago the interest rates were 5%, they went up to 6-7%. So here in the Bay Area especially, payments were going up 500-1000 or more. Plus, houses that were bought three years ago held the same value. So not only did the mortgage go up, there is no equity.
While I do feel bad, I personally don’t think the government should be involved with a bailout. Here, the market price is inflated. All the forclosures are going to even things up a bit.
The old rule of thumb about you can afford 3X your annual income is being put back into play. This means the loan companies won’t be giving the fantastic and unrealistic loans and the housing will become more affordable.
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