Posted by PJM/MI on 12/31/06 8:45am
Msg #168457

Foreclosures

Sadly, my neighbors of 20 yrs. are packing up their home (including the fence) and moving on after being foreclosed upon.
Some lenders can be awful towards borrowers when it comes to late payments, and no matter what, the home will be foreclosed upon.
In the case of my neighbors, this loan COULD have been saved a few months ago, had we known what we know now. There are many websites that offer help for those in foreclosure situations. (I'm not sure about other states.)
Now I have two empty houses in my neighborhood due to foreclosure, and 3 for sale. I'm beginning to think I might be the only left in my neighborhood.

Reply by John_NorCal on 12/31/06 11:18am
Msg #168472

That really is sad PJM. There are many places that offer help, and only by reaching out and exploring ones options can someone make an objective decision. Unfortunately oftentimes pride and/or shame keep people from reaching out for help. I guess that pertains to most things in life. As some say, "You can't go through life alone."

Reply by Sharon Taylor on 12/31/06 11:34am
Msg #168478

I'm saddened by some loans I close

As the notary, I have to stay impartial, although I do state the terms and conditions clearly to the borrowers and point them out in the documents so they are fully informed while keeping my face and voice as neutral as possible. Too often these people caught up in awful loans have been facing a financial crisis or are exhausted with paying many different small debts (credit cards, auto, stores, etc.) and let the first cold-call broker convince them that he/she is the answer to their prayers. They don't realize until they see the broker's $3,000/$4,000/$5,000 or higher fee on the HUD that they were the answer to the broker's prayers! Too often they are absolutely convinced the broker is working for them to find the best possible loan for their circumstances. Yea, right...and I have an excellent working bridge in Brooklyn I'll sell ya cheap too.

Reply by Julie/MI on 12/31/06 1:33pm
Msg #168491

Disclosure in Michigan closing docs

John, in many of the loans I close in Michigan, there is a document that needs to be signed that states the mortgagor will go to a credit counselor if they feel they cannot make ends meet. Some even give them 20 pages of "approved" credit counseling agencies.

Problem is so many refi to pay credit card debt; you cannot loose your home for credit card debt!

Additionally, our appraisals, that I think were inflated to begin with, have begun to sink so now those with ARMS cannot even get a fixed because the ltv is over 100 percent.

Reply by John_NorCal on 12/31/06 1:57pm
Msg #168494

Re: Disclosure in Michigan closing docs

Yeah I know what you mean about credit card debt. I signed off someone a few weeks ago. They had over $60,000 credit card debt alone. The wife was completely unaware of the debt, let alone the loan terms. She asked her husband, "A_______, what the hell have you done?" They are retired, they have used up their equity to within 80% LTV and they are now getting into a neg am loan. What a mess! The guy is a retired deputy sheriff and thinks he knows it all! I can see a foreclosure or another refi down the road.

Reply by SueW/Tn on 12/31/06 12:12pm
Msg #168483

So sorry PJM but unfortunately I feel it's not going to

get much better in the area of the Big 3. The bottom has literally fallen out and I don't believe the foreclosure is due to bad mortgage deals, it has everything to do with shops closing up and moving overseas. I blame the Big 3, they (in my humble opinion) saw it coming and waited until there was no recourse before letting it's loyal workers know they were up side down. I got out of the industry over 2 years ago but could see what was coming and the pattern exists in any state where the auto industry is. Usually husband and wife work in the same plant, knock down terrific money, enjoy the good life and never think it will end. Then the cost of oil rises, jobs begin to get cut and before you know it both are on unemployment or worse, the bumping system puts them out of a job. The small plant I worked in has just eliminated an entire shift and will cut their roles by 45% meaning with the union bumping system in place people with over 4 years seniority will be drawing unemployment until it just runs out. It's happening all over this country but right now those that feel it deepest are involved with the automotive industry which, for all intents and purposes, involves your entire state.

Reply by PL on 12/31/06 5:39pm
Msg #168514

Who's fault is it really?

Your neighbors due to either bad choices or bad circumstances faltered on their way to the American dream. Is it GM or Ford Or Daimler Chrysler who caused them to lose their house? I'd think not. Do I know people in this circumstance? Yes and they too either take a second job to make ends meet or they move into the rental community till they are back on their feet. Someone will come in, buy those houses around you and you will have new neighbors. It always ends up being someone's ending is someone elses beginning, especially in this case.

Reply by Markita_MI on 12/31/06 8:12pm
Msg #168523

That is really sad. Unfortunately, Michigan has been named the foreclosure capital of the US.
See: http://realestate.msn.com/buying/Article2.aspx?cp-documentid=1349808

As a result of many contributing factors like the big three closing shop or at least "restructuring" and moving overseas to areas where they can get dirt cheap labor, bad financial decisions, and an economy that is squeezing the middle class on every turn, I think we are going to continue to see a lot more of this trend before it gets any better in 2007.

Reply by ReneeK_MI on 1/1/07 4:29am
Msg #168567

Re: Foreclosures, and who's fault is it?

Michigan's in some seriously bad shape, and I don't see how it can be turned around any time soon.

The single most glaring factor in this all-encompassing, all-connected problem is this - too many people do not save money.

Too many people view credit liimits as 'money in the bank'. They buy homes based on over-time wages and projection. Nearly every ARM I sign - the borrower says "This is 2 year fixed, then I'll just refi ...." Always living on a future that is promised to nobody.

'Need' and 'want' become confused. Life itself becomes Super-Sized.

Absolutely the American people are pandered to, conned, manipulated, mesmerized - but ultimately we are all provided the freedom of our own choices.

Someone (? I don't remember) said something to the effect of 'If you really want to enslave a nation - give them everything.'