The Mortgage Crisis and the Silver Lining
The mortgage crisis in America has created a huge challenge for many families and individuals who are now at risk of losing their homes. Bloomberg.com reports that California had the most foreclosure filings in the U.S. last year and the biggest fourth-quarter decline in prices. The state had a staggering 481,392 foreclosures
Other states like Maryland, Florida and Ohio are also feeling the pressure. Carol Cohen of Cleveland Real Estate News.com is maintaining an ongoing report on homes for sale and in foreclosure for both urban and suburban communities in this north eastern Ohio region.
Many states have since put in place measures to ease the stress and provide some assistance that may help homeowners to hang onto their homes. There is no doubt that this is a sad story – let’s hope it comes to an end soon.
In the meantime this is also an opportunity for others to enter the housing market and contribute to the rejuvination of the economy and the neighborhoods impacted by the current economic crisis. Do you know that there are many homes in very desireable neighborhoods across the country from California to Ohio that are within the $100-200K range (see Carole Cohen’s link above)? These are homes that in some cases may have been double or triple the price only a year or so ago.
There is a risk that prices may drop even a further so if you are going to see if this is your opportunity to enter the housing market or make a move to neighborhood that you’ve always wanted to live in, do your research and time your entrance into the market accordingly.
Whether communities hit by this mortgage crisis are in affluent or struggling areas, they all can likely benefit from the investment that may come from those who can take advantage of this affordable housing market AND make a contribution to the communities that they will be calling home.
9 Comments
Trackbacks
- Your Foreclosure . Info » The Mortgage Crisis and the Silver Lining
- Mortgage » The Mortgage Crisis and the Silver Lining
We bought our house with 20% down and within a year were in a position with no equity. We were fortunate enough to ride out that dip, but remember what it was like to be locked into a high variable interest rate with no way out. We couldn’t refinance because we had no equity.
While I understand that many fall “victim” to a changing economy, I believe that there are too many people that choose to move to bigger houses, drive gas guzzling SUVs, and pile on credit card debt in order to live a life style they truly cannot afford. People need to learn to live within (or below) their means in order to live comfortable without needing to be bailed out. Cable TV is not a necessity for goodness sake!
I couldn’t agree with you more, Treece!!
Amen Treece. This emergency was created by banks who loaned to people who had no business buying a home and by people who took out mortage loans who had no business doing so.
mortgage. sorry fast typing. LOL! Did you know that mortage literally translates “Death Tax”
I Totally agree with Treece here. It may be hard to live with in our means however it is possible and in the long run worth it. There is no need to buy added stress. For me living above your means is just that buying stress.
Thanks for all these good points. It was a hard lesoon to learn and before long will likely be forgotten again, but for now this crisis will reinforce much of what Treece and others have said. We need to live within our means and note what is truly important in our lives – family and community.
Now that prices will come down to reality, maybe more of those hard working folks who did not enter the housing market before because they were responsible with their resources and refused to assume unrealistic debt , can now take steps to invest in the communities they enjoy.
Thank you for the ’shout’ and what a wonderful post you wrote about this. The truth is, buying a home regardless of the market situation is fluid; meaning the price ‘could have’ wound up lower in a month…or not lol. This however is the first time I have been encouraging my clients to think about the fact that the mortgage rates are now tied to the stock market and while a home may be listed lower in a few months, the higher rates could kick in. It’s always a bit of a crapshoot when you get right down to it. The most important thing to me is to find the means to buy a house first then find one you like and not worry about dickering over those last few pennies. Seriously! Good comments here too, Sharon.