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Foreclosures Surge 33% in August & Will Continue

Discussion in 'Political Discussion' started by PatriotsReign, Sep 15, 2011.

  1. PatriotsReign

    PatriotsReign Hall of Fame Poster

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    #18 Jersey

    Americans who fell behind on their mortgage payments got a break after the "Robo-signing" gov't intervention. It appears that issue has been cleared up and foreclosures will surge and the process sped up in the coming months.

    It is sad that Americans have to lose their homes, but for our economy to get back on track, we must endure this process so that real estate can finally find it's bottom. No form of gov't intervention can stop or mitigate this process...it sucks, but it's the reality we face.

    "Other factors have also worked to stall the pace of new foreclosures this year. The process has been held up by court delays in states where judges play a role in the foreclosure process, a possible settlement of government probes into the industry's mortgage-lending practices, and lenders' reluctance to take back properties amid slowing home sales.

    A pickup in foreclosure activity also means a potentially faster turnaround for the U.S. housing market. Experts say a revival isn't likely to occur as long as there remains a glut of potential foreclosures hovering over the market."


    Mortgage default warnings surged in August - Yahoo! Finance

    http://money.cnn.com/2011/09/15/real_estate/housing_market_foreclosures/index.htm?iid=HP_LN
     
    Last edited: Sep 15, 2011
  2. patsfan13

    patsfan13 Hall of Fame Poster PatsFans.com Supporter

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    428,000 new unemployment claims last week also....
     
  3. PatriotsReign

    PatriotsReign Hall of Fame Poster

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    #18 Jersey

    Sadly, we need foreclosures to speed up, not slow down to get real estate back on track. The more homes that are owned by qualified owners, the more jobs will be created to support them.

    Anything that slows down foreclosures is worse for our common well being.
     
  4. DarrylS

    DarrylS PatsFans.com Supporter PatsFans.com Supporter

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    What is interesting and usually neglected in this conversation is that the 5th largest homebuilder in this country, Habitat for Humanity, has a <3% default rate on their mortgages and they exclusively serve low income people.
     
  5. PatriotsReign

    PatriotsReign Hall of Fame Poster

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    #18 Jersey

    If you would like to discuss habitat for humanity home owners, we need to include the price they pay for their homes along with the interest rates on their mortgages.

    How much does a new construction Habitat house cost?
    A Habitat house costs approximately $60,000 - $75,000 to build. A new Habitat homeowner will only pay what it cost to build the house.

    How much are the monthly payments?
    The average monthly payment is between $350 and $450 depending on house style, location and length of mortgage; this includes an escrow payment for taxes, termite bond and insurance, but does not include any utilities.

    How does a Habitat mortgage work?
    Habitat acts as the lender for a 20-30 year interest free mortgage. The money that families pay back is channeled into the construction of more Habitat homes for other families.

    Charleston Habitat for Humanity

    Habitat for Humanity is a great charity of caring people, but really isn't relevant to this discussion.
     
  6. DarrylS

    DarrylS PatsFans.com Supporter PatsFans.com Supporter

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    Of course it is, in the NE the cost for a Habitat House is twice that much.. going to a specific habitat site in the south, is not the same as the north.

    The reality is that they have a <3% foreclosure rate.. they do not charge interest. Interesting concept for the fifth largest homebuilder in the US. Puts many folks with limited income in their own house..

    Perhaps they have a better model????
     
  7. PatriotsReign

    PatriotsReign Hall of Fame Poster

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    #18 Jersey

    How is this topic relevant to American mainstream capitalist system of home ownership. We're also not discussing habitat for humanity's model unless you support all Americans going to our government for mortgages...that's the last frikkn' thing we need our gov't to become....BANKERS!

    We want smaller gov't, not larger gov't Darryl.

    HfH home prices are based upon the cost to build a home and land & labor are free. So materials are the only cost and materials do not cost twice as much here as it does in the south. Home Depot does not charge twice as much for a 2x4 in NwEng as they do in SC.
     
  8. DarrylS

    DarrylS PatsFans.com Supporter PatsFans.com Supporter

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    There is no government involvement with Habitat for Humanity, just a lot of folks trying to make a difference and allowing families to live in simple, decent housing.

    All BOCA codes are followed, in the NE the costs are generally higher as the "dirt" is more expensive and all houses have a full basement. All finishes are first class, and every family can choose a luxury item.

    Habitat is a very viable alternative for many communities, and their model, despite your skepticism works very well. It is, after all, the 5th leading homebuilder in the US.

    It is bigger in the South and have seen whole Habitat Neighbourhoods that have thrived..
     
  9. PatriotsReign

    PatriotsReign Hall of Fame Poster

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    #18 Jersey

    It's an awesome model....so how can it be transferred to any potential homeowner, not just those who are disadvantaged? Or is that not what you're saying?
     
  10. DarrylS

    DarrylS PatsFans.com Supporter PatsFans.com Supporter

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    What I am saying is that there are different models that have proven successful.. careful vetting of the potential owner, the owner and family getting involved in building simple decent housing, partnering with local community groups and a very reasonable model.

    These houses are very nice, all new material is used, all BOCA codes followed and come with a one year guarantee.

    Compare it to "risky" mortgages with a greater than equal payback for the bank... there is no sympathy for any bank as they make more than double on most real estate loans.

    Take out the profit motive, and see what happens.
     
  11. PatriotsReign

    PatriotsReign Hall of Fame Poster

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    #18 Jersey

    Since we are not considering moving the US to a socialist nation, how do you propose we "remove the profit motive" from real estate sales?
     

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