Foreclosure in Mobile>Question Details

Daniel, Other/Just Looking in Australia

Why are there so many foreclosures across the entire USA?

Asked by Daniel, Australia Sat Aug 30, 2008

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There is a lot of reason and I don't think there is anyone that can point to one thing that happend but I will try to make it short and sweet for you.

10-15 years ago you had to have 10-20% down and great credit to buy a Home and over time the lenders got a little lets say aggressive a first time home buyer with a 575 credit score (which is not good I might add) and with no credit history could buy a home with no money down and they would close with an arm to make things worse and at 3 years these new home owners payments go up 200-300 per month- what happens they have nothing in it no equity because of 0 down so what do they do they let it go back and rent somthing cheaper- Then the lender to cover their lose put 3 more loans in its place with the same credit or worse so there bottom line looks good for wall street. O.K lets look at left hand you have people getting in the Real estate business who have never done it before you have people getting builders lic who have never even picked up a hammer. Because you have to fill the supply for demand and everbody saw a pot of gold at the end of the rainbow I can say this because I chased that pot - I was on the mortgage side young family comes to you and what to buy you have a lender that will fund the loan what do you do- I have four kids I funded the loan I helped give them the money- And honestly if I had a lender that would fund on a 580 credit score at 100% I would fund the loan- but what i do different is I will make sure my clients understand what they are getting into I help them after the fact if they get into hardship I let them know what there alternative are other than Foreclosure.
0 votes Thank Flag Link Tue Sep 2, 2008
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