Architectural Designs

Are some foreclosure due to homeowners lifestyles?

This question doesn't pertain to people who have lost their jobs!!!(I'm sorry for those that have lost their job) I'm talking about the people who have a million dollars , have a luxury style life and then cry then cry to the government that they cant afford the mortgages . I mean if you have 5-6 rooms use two of the rooms and rent it out and your back on track. Between me and my girlfriend we make about 50 thousand a year...and are planning on buying a house.

Public Comments

1. yes deff. mostly because of the niggers
2. Well of course some are. Some people buy houses they can't afford, then the slightest blip causes major trouble. And people who bought houses with adjustable rate mortgages and ignored the potential higher payments until they happened were just plain foolish. Or they ran up credit cards, then ended up in trouble. Obviously, as you say, many of the foreclosures are due to things like job loss. When you buy a house, don't listen to the realtors who will tell you "but you can afford...." and try to sell you a more expensive house than you are comfortable with. Decide up front, what you feel you can afford and still have money left to live as you want to, and go from there.
3. sorry but those people are not losing their homes. it is the ones earning 50k yearly that bought 500k homes. So that is definitely lifestyle. Then there are the ones that thought their home equity was an ATM and used the cash for cars, vacations and paying off big credit card bills
4. Yes that is fairly obvious. Lots of people are living beyond their means and would not be able to maintain their lifestyle with or without a recession. A credit crunch will just speed up the process. However, there are plenty of instances where circumstances change such as increase in mortgage payments, job loss, negative equity, increase in taxes which can push someone who could afford it into someone who couldn't. Many people were caught out because they thought they could afford a more expensive house because it would go up in value. If they couldn't afford it they'd simply sell it and make a profit. So simply they are paying for increasing their risk and a bad investment decision. The banks were very irresponsible for allowing people to do this, since someone knowledgeable in finance will have known house prices do not rise consistently forever. They never have and they never will.
5. in a nut shell yes. They want what they want when they want it and will sign any thing that allows them to get it. They were told what they were signing as that is part of the closers job and I have attended many closings and never has a person signing said I know every thing so just point ant tell me where to sign. That never happens. Every thing is explained to the signers full under standing. They are encouraged to ask questions if they do not understand. I am a mortgage banker in TN & KY
6. SOME - try just about ALL of the foreclosures are due to people spending more than they can afford.............dumbasses.
7. I think so, there are definitely some irresponsible people who live above their means. On the other hand, there are lenders out there who were caught giving loans to people who they knew couldn't afford them, they just wanted to make their commissions.
8. Yes, lifestyles can play a huge role in this dept. Some people simply do not understand the concept of living within one's means. So what if you can't afford this or that...just charge it to the credit card...hey, you can pay it back later! Right?! (*sarcasm*) As for you and your girlfriend looking to buy a house, so long as you have the credit, now is the optimal time to buy! With so many foreclosed homes on the market, so long as you play your cards right, you are destined to get a GREAT deal! I work for a real estate lawyer and we are constantly getting lengthy lists of foreclosed homes from brokers and agents with whom we do lots of business. Just remember, be patient, set aside a good down payment and when you find what you want, be tenacious! :) Good luck!