Quote:
Originally Posted by strandinthewind
The amount of foreclosures is up and some of the major markets are slowing. However, I read somewhere that even with the slowing of the market and the foreclosures (which could be due to a myriad of reasons - remember, the US allows one to discharge almost all their unsecured debt and still keep their house in a bankruptcy if they can still afford the payment) -- the amount of gain in the real estate market is still significant. I think much of the trouble is that people get 100% + loans and never pay them down. It takes time for property to appreciate to cover that excess even in the US market of the last ten years.
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well, the reason the foreclosures are up is because buyers were being offered deceptive financing and they figured they'd be making increasingly more wages to offset the anticipated increase in interest from the ARM. Sadly, jobs are going away or being outsourced or eliminated due to budget cuts, and people are left holding the bag. People in the Bay Area who USED TO make good $$$ either have only one income left to do the work of two or in some cases, no income at all. Its just not realistic. I HATE HATE HATE ARM's. I dont believe in gambling with your HOME. you need to know up front whether or not you can afford something, and if you cant, then WAIT!!
some people cry the blues because they took the bait and then suffered an economic loss or had to pay increasing interest (surprise!) that they signed on the dotted line for, and I say its just criminal what I've heard agents get away with. The weird thing is, people get all feverish when they have a home on the line they are in love with and they indulge in this "oh I know we can make it work, we'll save here and scrimp there, and you're gonna get a raise, and really, how much can the interest rates rise anyway" attitude, and boy are THEY in for a shock.....