Real Estate Foreclosure Myths
Why Does The Mainstream Media Want To Scare Us So?
Listen to the evening news and you feel like going into the street and throwing a going away party for most of your neighbors. The impression is that most of us will be homeless in the next few months because the banks will be foreclosing on our mortgages. The economy will be grinding to a halt because so many of us are not capable of managing our money, or we were tricked into bad loans that are about to re-price at higher interest rates.
Upon hearing of the 1919 Chicago Withe Sox "Black Sox" baseball scandal, a young baseball fan was quoted as saying “Say it ain’t so.” Well, it ain’t so!
More than mortgage trickery and poor personal management are to blame for the rising foreclosure rates, but fortunately here in the
First, particularly on the coast, we have seen double digit increases in home values over the past five years. This rate of increase was not sustainable. Prices finally bubbled, and the price bubble burst leaving those who bought in “the last days” with properties that were devalued over night. In some instances, properties lost 25% of their value.
Second, because of the rapid value increases, many investors bought with the intent of selling at a profit over a very short timeframe. Since the...