Homeowners re-defaulting after getting aid

[wall*e2008]

FWIW - none of these people have gotten any bailout money - the bill was just passed a few weeks ago. No one's had time to get new terms and re- default! Easy big fella!

Not true. I know people in the banking industry and they have been redoing loans for a while now. Some banks were doing it even before the bailout.

 

[c4a]

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You can say that from now until the cows come home and will still will not change the fact that there are over 10 million people out of work right now and several more million who have had their hours cut back to part-time..

You just don't get it - do you?

I get it. I,also get the fact that of the 10 million who are out of work...probably half or more are recieving unemployment benefits. I , also get it that it's Christmas (or Hannakuh, or Kwanza)...and parents want their kids to have the same (or similar) gifts that their friends have.

I get it because it hits my family hard...very hard.

I can drive down my road that has 7 houses on it...all but ours are "mini mansions". We have the standard brick ranch on the basement farm house...nothing fancy...but it is paid for. One of the mini mansions is owned by a dermatolgist. The other 5 (over 1/2) are in the process of being taken from the owners. All 5 are owned by young owners (late 20's to late 30's), driving brand new cars with the brand new car payment & insurance fees, who are complaining that they don't know what they are going to do because their hours got cut at the plant. All got in on adjustable mortgages they now can't afford. They owe more than the house is worth. If they sell the cars...same thing.

And I am not talking about those who played by the rules & life just came up...and gave them a shove...someone got sick...no insurance or not enough to cover medical bills. The ones who have had creditor's put liens upon their property & are truly suffering. My heart goes out to those people. It truly does.

 

[goofyforlife]

We have over 93% employment in this country. Things are not as DIRE as some insist on making it. This is nowhere near as bad as it has ever been. Not by a long shot.

My dh still has his job...(such as it is.. )

He's had no bonuses/raise in almost 3 years, lost most of co-workers...had insurance costs raised and benefits cut...

Just tell me how dire it isn't...

Nor does working up to buying your house...having a down payment, & decent credit.

My dh and I moved to MD and lost money to get rid of our house in PA. (paid $$$ to settle.) Houses here cost 2-3 times that. Average $250-300,000 for a modest house. So according to you i should live in a cardboard box for years until we have 10-20% down payment (oh wait that's $25-60,000)

Rent here cost just as much if not more than mortgage payments and taxes were killing us not having mortgage interest to deduct.....

Our credit isn't spotless but we can't live on 1 income here....

It's happening to lots of my neighbors and our friends...

 

[ntsammy5]

Not true. I know people in the banking industry and they have been redoing loans for a while now. .

I'm a banker and the money is NOT from the bailout - it hasn't had time to make it from the Fed to the banks to the borrower and hasn't had time for the borrower to re-default (which is 90 days past due) There hasn't been enough time for the bailout to work like that. I agree people have re-dafaulted, but not using money from the bailout.

 

[wall*e2008]

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You can say that from now until the cows come home and will still will not change the fact that there are over 10 million people out of work right now and several more million who have had their hours cut back to part-time..

You just don't get it - do you?

What % went from FT to PT? Many went from OT to just FT. If they used the OT to secure their mortgage then they are in trouble when the OT gets cut. That was theirs and the banks mistake. They were living beyond their ?FT means.

When DH and I bought our home we only used one income. We both work and realized if one of us became unemployed we could pay the mortgage. If we both lost our jobs at the same time then we could pay our mortgage with two unemployments and have time to decide what to do with the house if the need arose. Guess what both scenarios have occurred since we bought our home and we were never in danger of losing our home. We could have have a home in a "better area" or the granite counters others have or the hot tub and built in pool or ....... But we chose financial security instead.

 

[sahd2one]

I... The other 5 (over 1/2) are in the process of being taken from the owners. All 5 are owned by young owners (late 20's to late 30's), driving brand new cars with the brand new car payment & insurance fees, who are complaining that they don't know what they are going to do because their hours got cut at the plant.

Here is what I don't get. It is not their jobs.

Jobs are offered by an employer. The employer is and always has been the one that offers a job to be done by a worker. The employer pays for that job to be done. The employer is the one who owns that job to begin with.

 

[sahd2one]

My dh still has his job...(such as it is.. )

He's had no bonuses/raise in almost 3 years, lost most of co-workers...had insurance costs raised and benefits cut...

Just tell me how dire it isn't...

You are posting on a disney themed website I assume not from a library.

You ate a hot meal last night, you are not standing in a bread line.

No it isn't DIRE at all.

 

[c4a]

[

QUOTE=goofyforlife;29103388]

My dh still has his job...(such as it is.. )

He's had no bonuses/raise in almost 3 years, lost most of co-workers...had insurance costs raised and benefits cut...

Just tell me how dire it isn't...



My dh and I moved to MD and lost money to get rid of our house in PA. (paid $$$ to settle.) Houses here cost 2-3 times that. Average $250-300,000 for a modest house. So according to you i should live in a cardboard box for years until we have 10-20% down payment (oh wait that's $25-60,000)

Rent here cost just as much and taxes were killing us not having mortgage interest to deduct.....

Our credit isn't spotless but we can't live on 1 income here....

It's happening to lots of my neighbors and our friends...

[/QUOTE]

Realise to you it may seem a quaint notion...but that is how we in the older generation did it. And guess what...it worked. I have 226 acres + a house paid for...but I also drive an older vehicle and don't use credit cards. I pay cash. Another quaint notion by most younger people's estimation.

And if it wasn't a forced transfer to keep the job...then you made a very poor investment choice.

 

[wall*e2008]

Realise to you it may seem a quaint notion...but that is how we in the older generation did it. And guess what...it worked. I have 226 acres + a house paid for...but I also drive an older vehicle and don't use credit cards. I pay cash. Another quaint notion by most younger people's estimation.

And if it wasn't a forced transfer to keep the job...then you made a very poor investment choice.

Nice!!!!!!

 

[sahd2one]

And guess what...it worked. I have 226 acres + a house paid for...but I also drive an older vehicle and don't use credit cards. I pay cash. Another quaint notion by most younger people's estimation.

And if it wasn't a forced transfer to keep the job...then you made a very poor investment choice.

I don't know anyone who drives a vehicle who hasn't gotten a raise since September.

 

[c4a]

Here is what I don't get. It is not their jobs.

Jobs are offered by an employer. The employer is and always has been the one that offers a job to be done by a worker. The employer pays for that job to be done. The employer is the one who owns that job to begin with.

True. However, when getting a loan...it is partly what the bank takes into consideration...current salary, projected salary, extra income that the person wishes to disclose. The majority of people-it is their only source of income.

And want to get technical...none of the people are losing their houses, either. Until paid off, the house technically belongs to the bank or mortgage company. Don't pay the bank/mortgage company (landlord until note paid off) & they are going to do what any landlord will do...kick you out of their house.

 

[sahd2one]

True. However, when getting a loan...it is partly what the bank takes into consideration...current salary, projected salary, extra income that the person wishes to disclose. The majority of people-it is their only source of income

I guess I just have seen it far worse in my years on this planet to know that they always get better and they have been far worse.

 

[c4a]

I don't know anyone who drives a vehicle who hasn't gotten a raise since September.

Well, bless your heart. Yes, I live in the sticks...by choice. Yes, I have over an hour (almost an hour and a half) drive to work one way. I don't have the fancy resteraunts, shopping malls, a movie theatre, or the luxeries that most people have within a couple of miles...but I have something better...peace of mind. And my old Tahoe may not be much too look at...definately needs a good wash...but it is paid for...which makes my insurance cheaper, also.

A long time ago, I gave up on trying to keep up with the Jones...they inherited their money...I've had to work too hard to save mine.

 

[sahd2one]

Well, bless your heart. Yes, I live in the sticks...by choice. Yes, I have over an hour (almost an hour and a half) drive to work one way. I don't have the fancy resteraunts, shopping malls, a movie theatre, or the luxeries that most people have within a couple of miles...but I have something better...peace of mind. And my old Tahoe may not be much too look at...definately needs a good wash...but it is paid for...which makes my insurance cheaper, also.

A long time ago, I gave up on trying to keep up with the Jones...they inherited their money...I've had to work too hard to save mine.

Well considering gas in September in my neck of the woods was over $4 a gallon and this morning it was $1.50. That is a HUGE raise in my income in my book.

 

[c4a]

Well considering gas in September in my neck of the woods was over $4 a gallon and this morning it was $1.50. That is a HUGE raise in my income in my book.

Lucky. Ours was $1.69 when I went through this morning. Still much better than back in October! Guess the gas shortage is over.

 

[sahd2one]

Lucky. Ours was $1.69 when I went through this morning. Still much better than back in October! Guess the gas shortage is over.

I am waiting for the oil companies to march up to Washington for some bailout money!

 

[C.Ann]

What % went from FT to PT? .

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I can't honestly tell you what the exact percentage was (I rarely have the news on and when it is, it's kind of background noise) but it was definitely from full-time to part-time - not OT to FT - and something was also said about the employment situation being the worst since 1945 - although I'm not sure what that was in regards to..

While I realize that not every area of the country is suffering as badly as some, there's no denying that many, many people have lost their jobs - just in the past month alone (never mind the months prior to that) - and when this particular OP posts a link to an article that clearly states they don't know the reason that these defaults are taking place, I have to wonder how it is that he (or anyone else) is so sure of what the reasons are when the person reporting it doesn't even know..

Bad choices in some cases? Maybe.. Living beyond ones means in some cases? Maybe.. But I think I'll wait until the people responsible for this report actually reveal the reason before I assume it's all a bunch of irresponsible dead-beats..

 

[wall*e2008]

There site lists the unemploymen rate for each state.

http://money.cnn.com/pf/features/lists/state_unemployment/


34 state have less than 6.7% unemployment. My state included. That maybe part of the difference we see here.

 

[Castlebound]

I'm not saying there aren't deadbeats out there. There are plently of them and I know a few. I also know people who have either had their hours greatly reduced or are now jobless. Those people who have been responsible but are now facing tough times would appreciate a chance to keep their homes. A no fee refinance to a lower rate could be what is needed to help them keep their homes. I'm not saying that someone with no money coming in and no prospect of any anytime soon should keep their house.

 

[djm99]

I think the default rates will continue to rise as well. As added pressure to this is the fact that the number of unemployed individuals is rising. The government can modify mortgages all they want, if someone loses their job and stays unemployed for any period of time, the chances of them defaulting on their mortgage rises drastically. The government has been spending time and money to try and prop up the housing market and look what has happened so far! Maybe its time to concentrate on employment which will serve to prop up housing in itself.