Forclosed homes

[Scarlett O'hara 0]

Well, I just need to vent. I just found out today that ANOTHER family is ditching their home on my block. There are 9 homes on my street and when this guy leaves that will make 5 empty homes. I just don't get it, can't wrap my mind around how SO MANY people (on one street) can just walk.

5 years ago I became ill and had to give up my job. First thing my husband and I did was call the mortgage company to see what they could do for us. Our thinking was we are not going to loose our investment!! (They did help us by cutting our payment in half for 2 years).

3 of the homes have been empty for 2 years, the prices are so low I could throw up. The homes are 1500+ sq ft brick colonial's built in the 1950's - all really beautiful. I saw one of them on line selling for 54,000 ~ we paid 148,000 8 years ago.

My formerly pretty block looks like an abandonded field with all the overgrown yards. I can't sleep at night b/c I am so worried that we will be broken into. I am becoming embarrassed about where I live when I used to be so proud. I'm wondering if we should just pack up and leave too - why not - there is no way we will ever get our money back!! In fact we are loosing money every day we stay!!

I know its really hard right now. So many people are struggling with money (including my family). But the first thing we do is pay the mortagage! (one family who left bought a new car instead of paying for their house)

I am just so angry!! Angry at the people leaving, VERY angry for the mortgage companies for handing out money to people who could clearly not afford these homes (or the up keep of them) and angry at my city for not going after the banks to get them to take care of these overgrown yards!!

Everytime I think things can't get worse, they do!!

Thanks, I just needed to vent (my husband is tired of hearing about it).

Anybody want to buy a house?

[di1138 8]

Before you judge the people consider what may have happened. I still have my home, thank God, but our credit rating took a hugh hit because my husband became physically disabled by a stroke several years ago. I lost my job in December and have been franticly looking for another. Unemployment has run out. I can't even get a minimum wage job in my area. Gas is $4.69 a gal. so I cant travel far for a job and all other expenses have skyrocketed. Even with health insurance we pay over $140. a month for prescriptions. We are fortunate that my husband has private disability insurance that pays for the very basics but without that our home would be foreclosed on too. We were very comfortable before all of this happened to us and the mortgage company gave us the mortgage because we could afford it. Like the old saying goes walk a mile in someone's shoes before you judge them. One never knows what is around the corner -

[libra 13]

The econcomy is a killer right now. This is the highest rate of foreclosed homes in history. People got in over their heads with interest only loans etc. Also with gas and food prices through the roof, people just can't make ends meet anymore. I know we've had to tighten our belts significantly so we can make our bills, and it's still a challenge.

Sad and scary times are ahead for our country. We're going to see a lot more families losing their homes before this is all over, I think.

[babs0101 1]

I can sympathize with those losing their homes through no fault of their own, but those who took on mortgages when they knew they could not afford them, especially these goofy interest loans, then what can they expect? I don't think I, you, or anyone else should be bailing them out either. If the gov. steps in and helps them, where is that money coming from? ME, YOU, OUR TAXES! I have enough to worry about with my own house, family, and living. I can't be carrying the load on my shoulders for everyone else too.

[three sixty six 1]

I can sympathize with those losing their homes through no fault of their own, but those who took on mortgages when they knew they could not afford them, especially these goofy interest loans, then what can they expect? I don't think I, you, or anyone else should be bailing them out either. If the gov. steps in and helps them, where is that money coming from? ME, YOU, OUR TAXES! I have enough to worry about with my own house, family, and living. I can't be carrying the load on my shoulders for everyone else too.

exactly! great post. this is how i feel. scarlett, hang in there. don't walk away because you see others doing it (and getting away with it). do what is right, keep paying. stick it out. this is just a valley. the peaks are coming again. they may not be as high as they have been, but it is still safe to say that your home is still your best investment. hang in there. so many of us with mortgages, myself included, hear these stories and panic, but we really shouldn't be, unless we're one of those with an ARM or have fallen behind. keep paying, and keep your chin up. this too WILL pass. it's natural.

[Gone4Now 4]

Wow...I guess they should all sacrifice their families, or whatever their situation is for your pride? You were proud and now you're not and it's all their fault because they went into foreclosure.

Guess they got you good, huh?

Before you go and get all grumpy at people whose lives are now ruined for the next 7-12 years, perhaps you should try to be more sympathetic. You've been in a tough spot...your mortgage company worked with you. Great. What would you do if your mortgage company went bankrupt and filed Ch. 11? Where would you be then?

There are hundreds of scenarios and reasons why people lose jobs, houses, cars, etc. I'm sure a fraction of those are because of poor choices, but not everyone can have the obvious wisdom of *others*.

Chill out...grab a lawn mower and cut the grass yourself.

[Scarlett O'hara 0]

There were articles last year in the paper about how drug dealers were giving that up to go into the mortgage businnes b/c the banks were handing out money to anyone and they could make more $ writing mortgages than selling drugs!!

If someone did not have a job/income that paid enough to afford the home, the former drug dealer would tell them to lie about their job position, or actually deposit some of their own $ into the buyers bank account for a few days to make them look better. Some of these guys are doing time in jail now (I'm sure the others are back to drug dealing).

It is sad to see these families loose their homes ~ I do AGREE with that. I just have to wonder, do they give up to easy? WHY are these mortgage companies letting people leave? Why would they want another empty home on their hands? Can't they work with people?

And yes, I am going to be pissed if the gov. steps in and forgives all these debts.

Oh yeah, we have cut lawns, trimmed bushes, pulled weeds, saved stray kittens from empty yards, called the police about stray dogs roaming, picked up empty beer bottles and garbage on these lawns, AND said many sad good byes. We have more than just an investment in our own home.

[MrsFlipFlops 2]

I agree with Glou- mow the lawns yourself. Consider it exercise and a therapeutic release.

There are lots of situations. My husband and I were talking about this the other day, I'm grateful that I can fill up the gas tank for the whole amount and not freak out about not being able to buy something else. Right now we're both employed, can pay all our bills, are not overextending ourselves. A lot of people keep saying they have to cut back on eating out, cable, their car, or trips to families... we haven't had to yet because even though we don't make a ton of money, we were conservative in what we bought. We don't buy a car unless we pay cash. We don't use credit cards. Be grateful for what you have, learn from other's mistakes and take the appropriate measures to safeguard you and your family from future mishaps in the economy. Save, pay for private disability insurance, make sure your policies are up to date, take advantage of life insurance offered by your company.

[MacMadame 81]

When I had my own business, paying the mortgage each month got to be dicey. We managed it but the mortgage company was not interested in working with us until we were seriously in default. Same with the credit card companies. We didn't want to be in serious trouble -- that was the whole point of calling them!

Anyway, I eventually gave up on the business and am back to making the big bucks in my chosen field and things are much better, but not everyone has a job that pays like being a software engineer does. Once you get in a hole, it's very hard to get out, too. The interest alone will drag you right under.

[Ninja 0]

I don't understand where people get the idea that they're somehow going to have to "bail out" all these people who are struggling. I must have missed the announcement that said the government was going to pay the mortgages of everyone who's defaulted, as I don't recall anyone, anywhere proposing that. The only proposal I've seen that would actually benefit the homeowners, rather than the mortgage companies themselves, is one that would have frozen interest rates just before they switch to an adjustable rate (and thereby increasing significantly). How, exactly, would that have negatively affected you?

I know it's really easy judge people for being stupid enough to agree to loans that, in retrospect, were a terrible idea. I admit my first thought when reading some of the stories has been to wonder why on earth the person didn't just ask a few questions about what they were signing. But let me ask you this: did you closely read and perfectly understand every single document presented to you at the closing on your house? At my closing a year and a half ago I was presented with a stack of papers an inch thick and told where to sign. I'm a lawyer, so I knew to insist that they at least let me skim things, but I'm willing to bet most people just sign where they're told. And if a mortgage broker or lender has glossed over the details and given them the wrong impression of what they're signing, it's too late at that point.

References in newspaper articles notwithstanding, I doubt most of the mortgage brokers were former drug dealers. Some of them, however, along with some of the mortgage companies, were greedy and unethical, and those are the people at whom you should direct your anger.

Scarlett, if it makes you feel any better, try to remember that your property value is largely irrelevant until you decide to move. If you're planning to stay put for several years, chances are that the value will have bounced back by then. I understand the frustration of uncertainty, but trust me when I say that the people who've been foreclosed on are far, far worse off and that they will be paying for it for a long time.

Edited July 9, 2008 by Ninja

[*susan* 1,709]

Not that this is really any of your business, but not everyone is a low life who should not have been approved for a mortgage in the first place. Four years ago, we bought our home. At that time, both my husband and I had great jobs and were more than able to afford the payment we committed to. Two years ago my entire department was laid off. I was out of work for 4 months before I was able to find a job. The benefits were not near as good, the cost of health insurance was a lot more, and my pay was less. Then, I became ill and was out of work for almost a month. Because I hadn't been at my new job very long, I was off without pay during that time. My husband was working on commission. He works in the automotive industry and that started sucking. Between my problems and his commission dropping, we fell behind on all our bills. He has switched jobs to where he now receives a base, guaranteed salary along with monthly bonus checks. However, by this time, our mortgage payment had fallen seriously behind.

This is called unforeseen circumstances. Do you think I wanted to get laid off? Do you think I planned to get sick? Do you think my husband wanted his commissions to drop? NO!! But, it happened. We are devastated because we are looking at losing our home in the next few weeks. We have tried and tried and tried working with the mortgage company. The problem is, they are working so many foreclosures, it is almost impossible to ever talk to a live human being. But, despite our massive efforts to work with them, they are going ahead with the foreclosure process and we may lose everything as a result.

As for the government, sorry, I sure as hell do hope they step in and help the millions of people in the same situation I am in. If our government can help every other country in the world and their people, then by gosh it is time they helped those of us right here in the good ol' U S of A as well.

I don't take fancy vacations, I have not bought any new cars or anything else for that matter. I go to bed every night worrying about our situation and wake up still worrying. It is on my mind 24/7. So, I am happy for you, believe me, extremely happy that you are able to maintain your bills and your home in the current economic status we are in. But, until you have walked a mile in my shoes, I suggest you not pass judgment on me. Instead of being pissed off because people are walking away from their homes and not mowing their lawns and making your home look bad, try and show a little sympathy for these poor people. We didn't all get together and say, "oh, lets piss off the neighbors by walking away from our homes and letting the lawns overgrow." We are good people who work hard and have fallen into some dam hard times and do not need to further add to our already fragile states by having people judge us.

So, with that being said, mow the lawns and be happy you still have your home.

Edited July 9, 2008 by *Susan*

[Ninja 0]

Susan, I'm really, really sorry that you're going through this. I'm hoping you and your husband find a way to get through it.

[ReadySteadyGo 8]

Susan,

I hope that you and your family are able to get through this difficult time. I wish you all the best and I am sorry for the struggles you are experiencing.

[Gone4Now 4]

Susan,

I am so sorry for your struggles.

I hope, too, that the government can help. Like you said, we send aid everywhere else...why not here?

My mother and brother are broke and have never been able to accomplish anything. Growing up we were always kicked out of places, moved back in with my grandparents and tried again. When my grandparents died, my mother has started to ask me for money. Now my brother is. I have always had to bail them out. I do it because despite their poor judgement, I love them.

So, I was thinking the other day, as I was sending another check to my mother...What if something happened to me?

If I died, it would be okay because I do have life insurance.

But what if I got sick or laid off? There is no one to help me and I would be one to foreclose.

What was I supposed to do? Only purchase my home if I could afford it...without a job? I did NOT get a stated loan, and I put money down. I still owe around $90,000.

Sorry - don't got that in my back pocket and I'm sure people who are going to foreclosure are in the same situation. Poor or middle class and living off of credit.

[Kat817 19]

Susan, I will keep my fingers crossed for you, and put you in my prayers. A little over 2 years ago, when I was banded, just a month later my DH was suddenly diagnosed with a failing mitral valve in his heart, before he could get to surgery, a poorly done angiogram left him with a blood clot, so surgery was postponed for an additional 3 months, then he had open heart surgery. Followed by 2 months recuperation, and before he could get back to work, the idiot Dr.'s locally struck again, and mismanaged his blood thinners, and he had a massive GI bleed. That left him in ICU for days on end, then although they managed to save his life, in doing so, thickening his blood so---they disrupted the heart surgery so it had to be redone!

We went from happy go lucky, self paying for my band, to him being out of work for almost a year!

If our home had not been paid for we would have been SOL! We would have lost it without a doubt. As it was we ran up credit card debt, just surviving. We are now paying it down.

One of the big credit card companies, kept increasing our credit limit----I mean we were the kind of customers they liked, we used the card, and paid the minimum on time monthly---getting in deeper and deeper! But we were not doing so by choice! Much of his surgery was done in a city 300 miles away. When he was in the hospital, I slept in his room, but he was recovering, so when we went for checkups a motel was required. We did not buy new cars or anything else for that matter, we packed a cooler with food to take sometimes, to avoid eating out!

Well we wrote asking for the latest credit increase to be removed, we did not want it on our credit to have that much open credit---I mean they approved us for 100K --gimme a break--on a credit card????

We heard nothing, but sure enough on our statement, there was the available credit, over 90K!! Life got chaotic, and we just let it go. So last week I get a letter from the credit card company. And since his health has improved, and he is working full time again, our goal is to pay it off, and we have not charged on it in over a year. So they reduced my credit limit! That shows negative on my credit report!!! I did nothing to deserve that black mark on my credit, we struggled and suffered sometimes (sleeping in a hospital chair IS suffering!!!), to maintain our credit in tough times, and now I am being punished for it???

They are unwilling to put a human on the phone....I have no idea how people struggling to save a home, get anywhere!

Back in the 90's I did background checks for a mortgage company a friend run---just checking the credit, and the info provided, making sure it was all true. The mortgage company she worked for actually paid her more commission on an ARM than a set % rate! I wonder now how many of them made it.....

Life comes at you when you least expect it. Like I say I would not be sitting here in this house, if I had had a mortgage to make when we got side swiped by life itself!

Count your blessings....because when you least expect it, life may jump up and bite you in the ass as well. I truly hope not, I understand the frustration of seeing your home values drop, and knowing you are paying more than others, and the fear you live in as the neighborhood declines.....it is all understandable. But negativity breeds negativity, I honestly believe we can make a situation better by looking for the positive. And going to bed at night in your own home....is a definite positive!

Kat