Question:

I am looking to find out, for sake of a debate with my boyfriend, why your in foreclosre?

by  |  earlier

0 LIKES UnLike

I am looking to weight why? Loss of job or lack of being conservative.

 Tags:

   Report

9 ANSWERS


  1. Hello,

    Usually job loss, marriage split up are the culprits in addition to being impatient and buying a house at ridiculously inflated prices. In the past, a sudden rise in interest rates like in the early 80's can be very ugly as well.

    Cheers,

    Michael Kelly


  2. Are you asking why people end up in a foreclosure situation?  Yes, sometimes it is due to a loss of a job.  Other times, the person bought a house with mortgage payments that were larger than what they could afford.

  3. I don't mind answering.  My husband and I are in forclosure.  I think you may both be correct, and I don't know why most are happening.  The economy is in bad shape and it eventually effects everyone, but here is our situation:

    We are proffesionals who have always had good credit and reliable, higher than average income.  A couple of years ago, husband left his carreer to start a real estate development business with a family member.  Things were going amazingly well and our income more than doubled.  We saved and decided to upgrade to a new (and very expensive home)  They payments were high, but were not a problem.  We still had plenty of disposable income and were able to save.  I had a baby last year and decided to become a SAHM.  

    The RE market in our area colapsed in about September.  We were able to live off savings for a few months but we used much of it to continue to pay employees and try to keep the business afloat.  By January, we had to go out of business.  Husband was able to get a job back in his regular line of work pretty quickly, and I have been able to start work as a consultant from home in my prior career, but it is more of a part time income.  We make about 1/4 - 1/3 of what we used to and we just can't afford this home.

    So, were we irresponsible and living outside our means?  I ask myself that question all the time.  The home was well within our means at the time, but things changed quickly.  We did have savings, but with the home and car (and boat) payments we had, that doesnt last long.  I wish we had waited longer and made sure our income could be sustained over a long period of time.  Then we could have avoided this.  But the reality is that we probably wouldnt have saved much more.  We would have invested the extra income back into our business and it still would have been lost.

    Long story short, this was a painful lesson, but I am glad we learned.  We are still young and we will recover.

  4. I think it can be caused by a lot of different things but mostly from poor management and overspending.

    We just went through iy yhis past year because my husband became disabled. We had been long time dairy farmers. The dairy business had not been good for several years and when he got sick we had to sell out and owed more than our cattle was worth. We paid half the loan off but my job didn't pay enough to make the remaining payments.

    It took 2 years for him to get his Disability Social Security. You have to be age 50 or terminally ill to get disability any sooner according to our attorney.

    He worked very hard all his life and would have been debt free in another 10 years. It's like starting all over again.

    Hope this helps answer your question!

  5. In my area, people are losing jobs (and health insurance).  The entire mortgage meltdown was waiting to happen.  However, consider that with spectacular economic growth, many people could have afforded higher payments due to readjusting ARMs.

  6. this has been all over the newspapers and in news magazines. I am sure you can find stories there that are more in depth than what someone would write in response to a yahoo question.

  7. I do not understand your question.

  8. It's poor etiquette to ask people such personal questions.

    Is that why you put this in the Etiquette section?

  9. In my experience, it's generally a change in market (a lot of people can't afford to live in America now--prices of gas, food and clothing is so high, and people's pay rate hasn't found much increase) as well as a  hard time adjusting to the new market (with prices so high, you can't afford to go out as much, or buy as many new things--people have a hard time changing their old spending habits).

    People are also getting laid off like crazy due to employers not being able to pay as many workers, and many businesses are closing down--this leaves many Americans without jobs and not many new openings--thus people are in ditches, that they can't really get out of.

    It has also been reported that this summer, has been one of the hardest summers for teens to find work--if it's hard for a teenager to find a minimum wage job, at a fast food joint or super market, think of how hard it would be for a qualified adult.

    Many people are also in foreclosure due to other things (sudden mortgage increases, deaths, divorces, or sudden handicaps) as well as poor management or debts.

    Thank goodness my parents decided to pay off the mortgage (well my uncle, decided to do it for them), because I don't know what I personally would do being thirteen years old and homeless. :/  

Question Stats

Latest activity: earlier.
This question has 9 answers.

BECOME A GUIDE

Share your knowledge and help people by answering questions.