Many of the reasons behind foreclosures are health problems, loss of income and divorce. There is a certain segment of the foreclosure market are trying to game the system. That is how I took your question if that is not how you meant to frame the question then I am sorry.
In Richfield (it appears where you are from) in 2002 the median sold price was $180,500 at the end of 2008 it was $185,500 a gain of $5,000. The median peak in Richfield was 2006 $223,750. The average were a little different but similar. I have heard before that from the 1950â€™s through the 2007 the average increase in the price of The Metropolitan area has been 5%. Real estate number one is a place to live and is a long term investment and should be viewed as such. A home purchased should be lived in for at least five years because just to cost to buy and sell a home is around 10%.
I have said for a number of years the long term credit market is broken, cars, houses and big ticket items. It assumes that we all have consistent income and jobs like 40 years ago. It is no longer true today. I have consulted with many clients on job transition. The long term credit market should allow for a provable hardship say loss of income, medical problems, etc. It should then allow a 3, 6, 9, 12 month moratorium on payments. It would then roll the missed payments interest into the long term loan. If this had been done in the past we would have a very small problem instead of a very large problem.
I my humble opinion the underwriters that certified the mortgage pools were A rated are the most of the problem. Bad and good were in the same pool. The good ones refinanced over time and the bad ones couldnâ€™t so what was left were the bad loans in the pool. This has been piling up for many years.
A raising housing market covers a lot of sins, fraud, and equity taken from homes that should not have been taken. Keep up with the Joneses. When the market dropped most (not all) of it was exposed.
I have never sold a home to a buyer without first doing a market analysis so it was a right price in the current market at that time. I never recommended a buyer finance with an adjustable rate unless they really wanted to. I educated them on each different mortgage they considered. With my client and ONLY DID WHAT IS IN THEIR BEST INTEREST not mine. I lost clients (income) because an inspection found a problem and we cancelled the purchase agreement. The home sold to someone else. I always used the most experienced vendors in inspection, warranties, title companies and mortgage. They had many options to choose from. I would not do anything that was in even the gray areas.
Under state law we have a Fiduciary duty to the client we represent. We are required by state law to owe these duties to the client, Loyalty, Obedience, Disclosure, Confidentiality, Reasonable Care and Accounting. If you want more information on Fiduciary duty please let me know I can send anyone a PDF.
I am not looking for any business but I am trying to change the world for the better one person at a time. I work on improving myself. Here is something I use everyday of my life.
And acceptance is the answer to all my problems today.
When I am disturbed, it is because I find some person,
place, thing, or situation -- some fact of my life --
unacceptable to me.
Nothing, absolutely nothing happens in God's world
Until I can accept life completely on life's terms, I cannot be happy.
I need to concentrate not so much on what needs to be changed in the world as on what needs to be changed in me and my attitudes.