Originally Posted By DouglasDubh <According to this story, the last record high quarter was in 2002 (.50%) and in the last quarter of 2006 the average foreclosure rate was .54%> So we've gone from about a half of a percent to about a half of a percent? How much you want to bet the record prior to 2002 was about a half a percent? Maybe someone with better googling skills than me can enlighten us.
Originally Posted By RoadTrip <<So we've gone from about a half of a percent to about a half of a percent? How much you want to bet the record prior to 2002 was about a half a percent? Maybe someone with better googling skills than me can enlighten us.>> There you go again. Looking for facts rather than hysteria. Mortgage foreclosures are up in the past couple of years, but they are up from historic LOWS. Foreclosure rates in the 60's, 70's, 80's and 90's were all higher than they are now. Source: <a href="http://www.fdic.gov/bank/analytical/working/98-2.pdf" target="_blank">http://www.fdic.gov/bank/analy tical/working/98-2.pdf</a> Sorry all you Chicken Little's out there... the sky is NOT falling!
Originally Posted By SingleParkPassholder I'm no finance wonk and never want to be (it's a proud moment when our checkbook balances), but I think some sort of legislation needs to be enacted about these teaser loans. The interest only, low percent that explodes later, the five year ARMs, all the crap that even us non-econ types could see as a problem a mile away. Stated income loans, all that stuff. The free market theory can take a hike on this one, but the rules need to be tightened so only the responsible people make or get loans. IMO, it's downright criminal that E-Kwikee Loans and the like can prey on people, lead them on, and promise them anything just so they can inevitably go into foreclosure later.
Originally Posted By imadisneygal For the record, I'm not crying that the sky is falling. I was simply posting the response to this: "Really? When and what was the old record, and how far above that are we? " There was no commentary on it. Just the reported numbers.
Originally Posted By DouglasDubh I'm not so sure the people getting foreclosed on are that big of victims. I mean, with no money down and low initial interest rates, were they paying more to live in a place then they would have if they had just rented? Is a bank saying, "Your interest rate is going up, pay more or we foreclose" all that different from a landlord saying, "I need to raise the rent, pay more or move"? I think the only people really out are those who bought and didn't occupy, and were hoping to make quick money by flipping. I don't have much sympathy for them.
Originally Posted By DouglasDubh <I'm not crying that the sky is falling.> I don't think RoadTrip was calling you a Chicken Little. I certainly did not mean to imply it.
Originally Posted By SingleParkPassholder "Is a bank saying, "Your interest rate is going up, pay more or we foreclose" all that different from a landlord saying, "I need to raise the rent, pay more or move"?" Certainly is. A landlord can only do that at the beginning of a new lease or on a month to month basis. A tenant just walks away. A foreclosed homeowner finds himself with a major hit on his credit, possible lawsuit, liens and repossessions, and because of all that, he'll find it even harder to rent a place than the tenant who simply walked.
Originally Posted By RoadTrip <<<I'm not crying that the sky is falling.> I don't think RoadTrip was calling you a Chicken Little. I certainly did not mean to imply it.>> That is correct. I was speaking of all the people out there writing news articles and headlines that would make you think this was the end of life as we know it. In the total scheme of things it is a minor blip. [I guess I also thought that the OP was a little alarmist.]
Originally Posted By DouglasDubh <A landlord can only do that at the beginning of a new lease or on a month to month basis. A tenant just walks away. A foreclosed homeowner finds himself with a major hit on his credit, possible lawsuit, liens and repossessions, and because of all that, he'll find it even harder to rent a place than the tenant who simply walked.> Yeah, that's a good point.
