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Mom Confessions Mom Confessions

the sad reality about foreclosures.

Posted by on Nov. 15, 2012 at 5:09 PM
  • 73 Replies

let's say you buy a house for $120,000. you put down $6,000 - $10,000 down payment, and are consistant in maing your monthly payment of let's say, $800/mth.

the economy starts to get bad, and the banks are getting worried, and your mortgage suddenly goes from $800 to $1,400 mth.....then it is jacked up to $2,200 mth.

eventually you can no longer afford to make those payments. but you have already sunk a large amount of money into your home....down payment, monthly payments, any renovations you may have done......suddenly, you are being foreclosed on. 

all that you have invested into your home is gone. the banks have it, and now they are taking your home, and you will still owe them $. (i think?) 

they then turn around and re-sale  your house, and the process begins again.

the banks don't care if they lend you more than you can in reality afford, or if the economy is shaky, and uncertain. they want your down payment. they want the interest, they want the payments, and then they want your home, so they can do it all over again.

by on Nov. 15, 2012 at 5:09 PM
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Replies (1-10):
Anonymous
by Anonymous 1 on Nov. 15, 2012 at 5:10 PM
So true, they're all greedy bastards
D.O.E.
by on Nov. 15, 2012 at 5:11 PM

pinkjimmies06
by Silver Member on Nov. 15, 2012 at 5:13 PM
3 moms liked this
A lot of people got screwed by taking out ARMs and being told - oh just refi in a couple years. We said NO way when presented with one. Although I feel sorry for people who could afford homes and lost them due to job loss, I can't feel sorry for those who knew it was a stretch in the first place and then didn't do their homework.
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Not_A_Native
by Ruby Member on Nov. 15, 2012 at 5:13 PM
9 moms liked this

Well - if you have an adjustable rate mortgage that is certainly something that could happen.  Also, putting down less than 20% is generally a bad idea in the first place.

Read and research.  Don't take more than you can afford.  Don't use adjustable rate mortgages, or those that have balloon payments..  Get a fixed rate mortgage, put down as much as you can.

Sadly, many of the homes that were foreclosed on should never have been sold to those people to begin with.  And those people should have been smart enough to do their own research.

Anonymous
by Anonymous 2 on Nov. 15, 2012 at 5:16 PM
6 moms liked this

Mortgage payments do not go up unless you committed yourself to an ARM.  It has nothing to do with the banks getting "worried".

And the banks are out whatever amount of money you failed to pay them, plus the costs to foreclose, plus the costs to maintain the foreclosed property.  And if you were under water to begin with, then the banks sell at a loss (if they can even sell at all).

So, no, banks do not want you to default and they don't want to foreclose.

You need to get your facts straight.

Anonymous
by Anonymous 3 on Nov. 15, 2012 at 5:17 PM
1 mom liked this

This, and...............

If a person moves into a brand new home that was built on undeveloped property, your taxes the first yr will be based on the land alone, after time the value of the house will more than likely increase, causing taxes to go up hence the mortgage payment to go up (assuming it's escrowed).

I agree.  Do some research before buying a house.

Quoting Not_A_Native:

Well - if you have an adjustable rate mortgage that is certainly something that could happen.  Also, putting down less than 20% is generally a bad idea in the first place.

Read and research.  Don't take more than you can afford.  Don't use adjustable rate mortgages, or those that have balloon payments..  Get a fixed rate mortgage, put down as much as you can.

Sadly, many of the homes that were foreclosed on should never have been sold to those people to begin with.  And those people should have been smart enough to do their own research.


Anonymous
by Anonymous 4 on Nov. 15, 2012 at 5:18 PM
A bank can't jack your payment up from $800 to $2200, not unless you signed up for some seriously messed up deal in the first place which would be your own fault. We bought at the height of the market and we are still underwater but out mortgage has never varied by more than about $20 or so to balance the escrow.
mich.el.le
by on Nov. 15, 2012 at 5:18 PM
2 moms liked this

You know, you can't place all the blame on the banks.  No, they shouldn't have given out those loans, but people need to take responsibility in their financial decisions.  The people shouldn't have accepted those loans.

The woman in the avi pic is not me, she is my inspiration.  I am a wife, a mother, and an aspiring trainer and nutritionist. I love seeing people get fit and healthy to lead the lives they are meant to live.

Anonymous
by Anonymous 5 on Nov. 15, 2012 at 5:18 PM
1 mom liked this

let that be a lesson to the buyer to know what type of loan they are financing.  there's not a snowball's chance in hell I would ever sign a loan that's adjustable or a balloon mortgage.  and if you don't know what you're signing, you have no business owning a home anyway.

sunshinebebe26
by on Nov. 15, 2012 at 5:18 PM

This is true !! That is why no one should get into a mortgage they cannot afford easily IMO!

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