Homes facing foreclosure more than doubled in 1Q from 2007

[MidnightVoice]

http://biz.yahoo.com/ap/080429/foreclosure_rates.html

The number of U.S. homes heading toward foreclosure more than doubled in the first quarter from a year earlier, as weakening property values and tighter lending left many homeowners powerless to prevent homes from being auctioned to the highest bidder, a research firm said Monday.

Among the hardest hit states were Nevada, Florida and, in particular, California, where Stockton led the nation with a foreclosure rate that was 6.6 times the national average, Irvine, Calif.-based RealtyTrac Inc. said.

[Anonymous]

Believe it or not, this is good long-term news for the economy.

Don't get me wrong...if you're going through foreclosure because you lost your job or got sick or other circumstances beyond your control, I sympathize with your individual plight.

However, for the economy as a whole, one of the main reason's we're in a downturn now is because housing was way overvalued. And the only way we're going to get past that and regain a sound economy is if asset prices--i.e., housing prices--are allowed to correct to market levels. The government stepping in to prevent foreclosures is NOT helping...all it's doing is perpetuating the imbalance that caused the situation in the first place.

[cobra19]

If you're an investor, it's a friggin' gold mine.

[BungalowMo]

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TheNewWorldMan wrote:
The government stepping in to prevent foreclosures is NOT helping...all it's doing is perpetuating the imbalance that caused the situation in the first place.

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No kidding! From the little I've heard, Congress wants to pass a bill to help bail out homeowners facing forclosures...most because of low arm rates now going thru the roof.

No one helped me buy MY place & I'll be damned if I want to help millions who made bad financial decisions.  Not to mention that a bunch are the big friggin McMansions....jeez.  Don't even get me started.

I purchased what I could afford, financed the entire thing because saving was impossible (I'd be 60 by the time I had a decent downpayment).  Got $215,000 for 6.6 & now that rates are lower, I'm planning to refi in July.

I wouldn't trade the decision I made for anything...  Moz Bungalow....

My 100 year old "NEW" house!

Message Edited by BungalowMo on 05-09-2008 09:39 AM

[dizzier]

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@Anonymous wrote:
Believe it or not, this is good long-term news for the economy.

Don't get me wrong...if you're going through foreclosure because you lost your job or got sick or other circumstances beyond your control, I sympathize with your individual plight.

However, for the economy as a whole, one of the main reason's we're in a downturn now is because housing was way overvalued. And the only way we're going to get past that and regain a sound economy is if asset prices--i.e., housing prices--are allowed to correct to market levels. The government stepping in to prevent foreclosures is NOT helping...all it's doing is perpetuating the imbalance that caused the situation in the first place.

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exactly!!!!!!

for the first time in years i actually agree with GW and seriously hope that he vetoes the housing bail out bill. we need to just let the market do what it needs to do!

Message Edited by dizzier on 05-09-2008 07:14 AM

[MidnightVoice]

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dizzier wrote:

for the first time in years i actually agree with GW and seriously hope that he vetoes the housing bail out bill. we need to just let the market do what it needs to do!

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I have very mixed feelings.  Ignoring the social impact of a ton of foreclosures, there is the "TBTF" argument.  Too Big To Fail - it means that if a segment is big enough, the failure of that segment would cause so much financial disruption to the country that it makes more economic sense for the country to prevent it happening than it does for the country to let it happen.  Hence the Bear bailout, and hence the desire to prevent too many foreclosures - some of it is economics, not desire to ameliorate the social effect on the foreclosees.

The idea is that it is better for everyone in the country to loose $100, and prevent the failure, than it is to allow the failure which would cost everyone in the country $200.

[marty56]

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TheNewWorldMan wrote:
Believe it or not, this is good long-term news for the economy.

Don't get me wrong...if you're going through foreclosure because you lost your job or got sick or other circumstances beyond your control, I sympathize with your individual plight.

However, for the economy as a whole, one of the main reason's we're in a downturn now is because housing was way overvalued. And the only way we're going to get past that and regain a sound economy is if asset prices--i.e., housing prices--are allowed to correct to market levels. The government stepping in to prevent foreclosures is NOT helping...all it's doing is perpetuating the imbalance that caused the situation in the first place.

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I would further add that the government should stay out out areas that for Founding Farthers never intended it to be in.

Also we dont want the welfare mentality here where people who  just dont feel like paying their mortgage payment use the government to do so.

Whats next, 100 point increase on your FICO score and removing lates from your CR.

[dizzier]

i see your point MV, but the problem with that logic is that it assumes that the government can actually stop what has already happened. the ball is already in motion. the kind of money it would take to stop this from happening is much more than this country can afford.

[MidnightVoice]

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dizzier wrote:
i see your point MV, but the problem with that logic is that it assumes that the government can actually stop what has already happened. the ball is already in motion. the kind of money it would take to stop this from happening is much more than this country can afford.

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As I said - I don't know what the answer is.  But one way or another, the country is going to have to pay the bill, and it does not matter if we can afford it.  The question is how?

[Anonymous]

Hi everyone, I new to the boards, but am learning alot from all of you. I agree with letting the housing market slide. It is very unfortunate for all of those who are in foreclosure or heading that way, but it (housing prices) was way over inflated and was putting alot of us on the out side of being able to even hope to have our own home. Now with it coming down and into reasonable dollar amounts hopefully the rest of us can still have a chance of owning our own piece of the American dream.