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Foreclosure Rate Highest Ever

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Jim Bartley

Senior Member
Joined
Jan 20, 2002
Professional Status
Certified Residential Appraiser
State
Virginia
Article talks about increase in foreclosures due to "new products". I really like the quote about how things aren't so bad since home values are appreciating and lack of inventory. What do they think will happen when, not if, rates rise and inventory levels return to normal.

As an aside, I heard/saw that in July we happy consumers took on some obscene level of new debt. If I find a link on that, I'll post it.

http://www.marketwatch.com/news/yhoo/story...35FDA571307E%7D
 

jtrotta

Senior Member
Joined
Jan 16, 2002
JB

wouldn't expect any less from VA/FHA, they fund deals at 100% to 110%-and thats just got to be expected. When it starts driving into the real market place, then you'll see the Bankers stand up and pay attention, to little to late once again.


8)
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
When it starts driving into the real market place, then you'll see the Bankers stand up and pay attention

About 1978-80 in my area we saw rapid escalation of land prices for farms. This was largely due to what is now FSA (old FmHA) loaning money to anyone and everyone. One of my neighbors got into farming from selling typewriters. Another was interviewed after going under and lamented the fact he had worked 8 years for nothing. He got into farming from being a plumber. By 1982 land prices collapsed to 50-70% of 1980 prices.

Land prices were pumped up by easy credit to people who had no background in farming, thus were high risk to begin with. Likewise, the equivalent in home ownership is the person being put into the highest value home they can possibly swing a payment on. Is that smart? The market does not have to go down, it only has to go flat. These people are at high risk and history will repeat itself, probably within the next 10 years.
 

Oregon Doug

Senior Member
Joined
Jan 15, 2002
Professional Status
General Public
State
Oregon
JB - The majority of my work is foreclosure related and I was sorta planning to retire soon. Guess not real soon! I'm working seven days a week and it's not often that I get out of the office until midnight.

I'll get back to fishing sometime - that's why I'm OREGON Doug.
 
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