Henry Foreclosures
Are these foreclosures due to deadbeats?
In Troy, Michigan, Dorothy Guzek, a credit counselor since 1988, has seen the changing face of foreclosure.Her clients, were predominantly poor and minorities, now increasingly they are neither. Nowadays, homeowners holding professional careers with six-figure salaries regularly drop by her office. More and more they come from upscale Michigan communities such as Independence and Clarkston, once the summer retreat for Henry Ford, founder of Ford Motor Co.
In the last three months, the percentage of foreclosures for U.S. homes valued at more than $750,000 has climbed to 2.5 percent. The overall rate of foreclosures also is on pace to increase by a third this year.
http://news.yahoo.com/s/nm/20070329/us_nm/usa_subprime_foreclosure_dc;_ylt=AuRmn0EzZtM14G5uxUwEqFfq188F
Wow, It is really difficult to pick a best answer because everyone is so on target with this question.
There are many factors at work here. Americans have often borrowed to the full value of their homes. 10 years ago this was unheard of. They have also maxed out their credit cards, and are simply living above their heads. One blip–a health problem, a job problem, an accident–and they find themselves unable to pay their debts.
During this period, several other factors have affected people who always thought they could always pay any bills. Minimum payments on credit cards have risen to a level which will eventually pay off the debt. Previously, card minimum payments could have been paid forever and the debtor would never have paid off the debt. Bankruptcy laws have changed, making personal bankruptcy a difficult choice. Add a falling or flat real estate market, and higher daily cost of living due to higher gas prices, and many Americans are at the end of their tethers.
Are these people deadbeats? Well, they certainly fell for the idea that constantly rising real estate prices would allow them to refinance and refinance themselves again and again to pay off their debt. They also ignored the financial realities that if your monthly payments exceed what you can pay, you’re in a death spiral. Many also believe there is some kind of magic bullet out there and that somebody owes them this lifestyle, no matter their income. But, did they borrow money without intending to pay it back? I don’t think so.
The lenders are at fault as well. Historically, lenders knew that the best way to determine whether a loan would be repaid was to look at the ability of the borrower and the motivation of that borrower. Could he/she pay back the loan? And, did he/she have enough at stake that he/she really wanted to pay back the loan. When lenders began lending 100%+ loans to borrowers who had bad credit histories (evidence that in the past, he/she hadn’t paid back their loans), those lenders began ignoring both of these key rules. So, it is hard to feel sorry for either party.
NAVARRE Foreclosures, HUD Owned Home for Sale – 8584 HENRY ST SW, 44662
