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BlackPhx -> RE: Mortgage delinquencies continue to rise (12/3/2008 1:16:08 PM)
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In Florida there is a potential chance for people to catch up or try to if they are so inclined and the banks have been agreeing to it. Our Governor is trying to enact a Moratorium giving a stay on foreclosures for 90 days similar to the one Schwartzenegger and Obama (wants to) enact. http://www.sun-sentinel.com/sfl-1124foreclosures,0,5061114.story If they manage to do so, then it would give people who are trying a chance to catch up or even make efforts to save their homes with the agreements of the banks for forbearance payments. Whether people will take the oppourtunity to try and save their homes, remains to be seen. I know that in my area..while there are homes in foreclosure, there are also homes selling, some on short sale but the banks are doing what they can to keep people in their homes and inventory on their bottom line down.
People who go through foreclosure face more than just the loss of their homes. If the home does not sell, or sells for less than what is owed..they are liable for the balance, it's in the contracts and is something that many ignore until it comes back to bite them in the ass(et). Landlords don't want to take a risk on renting to them, and I don't know one that doesn't run a credit check. Since the major credit reporting centers work nation wide, there is no just going to another state and renting or buying. So people are trying to work things out. Some are re-upping with the military, the sign on bonuses go to pay off arrears, others are taking whatever they can get, temp jobs, day labor, garage saling, taking in boarders, anything they can do to raise the money to stay in their homes. They are cutting services to the bone to save money and apply it to the mortgage, borrowing from family, you name it.
Did they buy more home than they could afford? Yes. were they financially irresponsible? Yes. are they hoping they can save their homes long enough to sell them? Yes. Will it help? Every home not foreclosed on helps. The banks need to do their part and renegotiate the loans to a lower rate, though. This is part of what the bailout they recieved was to do. Not all of them are doing it. Penny wise, pound foolish. Better to renegotiate the interest rate to something the owner can manage and keep the houses OUT of their inventory until they can be sold. Inventory is moving, slowly, but sales are not totally flat in Florida and many of the homes sold are ones sitting in foreclosure inventory.
I can understand people being cynical, but unless the banks, people and government work together, it's going to be a disaster..not just a recession.
poenkitten
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