Honda Motorcycles - FireBlades.org banner

1 - 7 of 7 Posts

·
Registered
Joined
·
419 Posts
Discussion Starter #1
60 minutes in Australia ran a story last night on the home foreclosure situation in the USA. What a mess and very sad for the people who are forced to walk away from their homes. The agents, the ones who probably helped make the mess were running bus tours (in Stockton CA) for people looking to buy forclosed properties - you know that saying, only in America? Gotta admire that spirit anyway, they never did say how much a seat on that bus was going for but it was pretty full.

The knock on effect will be felt throughout the US and the rest of the world for years to come. The report pretty much laid the blame on the big lenders who allowed the situation to spiral out of control in order to turn a massive short term profit. Greed I think they called it. A good old fashioned lynching seems to be in order but you can bet the real crooks will get to keep their money while to average Joe pays the price. Right now Australia is on the brink of a a similar thing, foreclosures are on the rise and people who bought in to the property market on 100% & 105% loans are now seeing values drop, negative equity "happens" and the banks clsoe in. Funny part is denial still happens, talk to any real estate agent out there and they are talking the market up - twats. Australian residential real estate is over heated same as the US and it will adjust, just how far remains to be seen so hold on to your hats it's our turn to take some heat.
 

·
Premium Member
Joined
·
11,894 Posts
Here in the UK they reckon that house prices are about 30% over their true value.. the housing market is going into a downturn and it is getting harder and harder to get a mortgage (companies withdrawing mortgage packages, sometimes even after a mortgage offer has been made), Repossesions are on the increase... Its gonna get tough for some people..
 

·
Registered
Joined
·
2,559 Posts
I live in a portion of the US where thankfully our housing market never became over inflated and values are holding steady. We have seen only a minimal downturn in home sales over the past year. The problem with that is we also don't have the higher paying jobs you find in other parts of the country. Tulsa is just kinda mediocre all the way round.
 

·
Registered
Joined
·
39 Posts
The lenders were certainly the biggest culprit and should be forced to work with the homeowner to keep them in the house - lower their rate, extend the term, ect. But how stupid/greedy are the buyers too? They had to know that the payment was going up and they'd never be able to afford it. They should have gone to the mortgage holder to renegotiate, or put the house up for sale well before they went into foreclosure. Lesson to take from this: NEVER overextend yourself, act to rectify before the problem is too big to deal with.
 

·
Registered
Joined
·
266 Posts
I don't think you can blame just one party or person. I think we witnessed the 'greed' working at its best. It plagues everyone. Those who wanted big houses to those couldn't refuse million dollar bonuses.

Here in Southern California, the mess is hurting a lot of people good and bad. I bought my place almost 5 years ago, and one of the loan agent I spoke to said he can get me a loan for almost 'any' amount as long as he gets $5000 up front. I thought he was full of crap and went with more of a conventional loan on a modest home. I regretted not getting a big house the first few years, but now I thank God I didn't fall into the trap!

There are series of lawsuites being prepared against the wall street mortgage investors because there were some really bad loan practices just started revealing. They were talking about how people were getting bonuses by the number of mortgages one can approve. For example, an application would show that a small hotel employee was making $15K a month, and no one thought it was odd. Kids 25 years old without a college degree was making millions of dollars a year from these bad practices. What could've possibly stopped this? Perhaps ethics, but ethic is a pretty weak weapon versus a million dollar bonus check in front of your face.
This is truely a sad reality and there is no doubt that it will affect many millions for many more years to come.
 

·
Premium Member
Joined
·
5,652 Posts
+1. The lenders were only half of the problem, the other half was the buyer. People could only afford the interest only loans and they went for them and when the time came for them to start paying more than just interest they can't afford it. Or the people who took a real cheap adjustable rate mortgage.

Sorry, they got what they agreed too. If you don't read what you sign, then shame on them. if they didn't understand what they were signing, shame on them as well. Do a little research.
 
1 - 7 of 7 Posts
Top