Upcoming Foreclosures

why are people losing their homes? foreclosures?

i dont know anyone who has lost their job? but i recently see alot of homes for sale and hear its going on everywhere.so im trying to understand whats going on. hah,what perfect timing budhah.thanks

Public Comments

1. Many buyers naively took mortgages with adjustable rates, initially offered with a very low attractive percentage rate. And then borrowed 100% of the appraised value of the house. Meanwhile, their adjustable rates are now adjusting upwards dramatically, raising their monthly payments substantially. Since the value of the properties has now fallen, they find themselves unable to refinance the amount owed (now greater than the property value) at a fixed rate. Faced with substantially higher monthly payments and inability to refinance, they can no longer afford the house, so it goes back to the bank.
2. the whole story is on CNN right now.. take a look
3. Try this link http://en.wikipedia.org/wiki/Housing_bubble
4. Banks got gready and people got stupid. The credit requirements were dropped to an absurd level, which in turn allowed people to qualify for homes that they could not really afford. Another reason is the ARM loan - adjsutable rate. This suckered people into buying houses beyond their means. The payments were low at first and went up over time due to the adustable interest rate. People failed to consider this when buying homes and now can not afford their payments. Shame on the banks for being so greedy and shame on the people for not being responsible.
5. People made the biggest financial decision of their lives without realizing what they were getting into. People did not understand what an adjustable rate mortgage was, and when their house payment wa $1000 in 2004 it is now $1600. The mortgage comapanies also gave people loans they should not have. I could have qualified for a 250K loan based on my income and credit, but I bought a house for $140K and that is a struggle sometimes.
6. Personally, I only buy a small condo at first.I was wondering why people buy houses initially if the loan rate is high and high,people become the slave of the house. Buying a small property,then wait until it makes profit.I follow the simple formula: rental fee x12 momths devide total amount of price,if the rate more than term deposit rate,maybe it's a good time to buy, but also some other factors need to be considerated. Never put the most money on property is my rule, I'd rather invest some other ways in order to seperate the risks.
7. most home buyers have variable mortgage rates and they go up and down according to the housing markets. lately with our recession, the housing value has been dropping significantly while the rate has been increasing. this causes homeowners to loose money while paying for more in their monthly mortgage. it is a lose lose situation. when homeowners can no longer afford their mortgage payment due to the increase of their mortgage rates, while most are still employed, their banks or finance company seize their homes causing foreclosure.
8. read the newspaper, watch your local news station!!