Home Foreclosures: How Homeowners Contributed to the Crisis

While it’s popular to blame banks and fat-cat Wall Street execs for the home foreclosure mess, the simple truth is, homeowners deserve some of the blame as well. Case in point:

If you earn $35,000 per year, do you think you can afford the mortgage of a home that costs approximately a quarter of a million ($250,000) dollars?

If you ran the numbers, you’d quickly see that the answer is no. In the October 2009 Credit Union Times article, Member Fights Foreclosure and Fla. CU Over Misapplied Payments, one homeowner quickly found this out. She’s now facing foreclosure. And quite frankly, it’s because she couldn’t afford this much home on her salary. The article states:

Soto’s annual salary was roughly $35,000 back then. Her monthly payments on the $240,000 loan started out at $1,500 and went up to roughly $1,800. She acknowledges now that her salary may have been too low to stand up to the monthly loan payments.

Until Americans learn to become better savers and rely less on debt “as a lifestyle”; NOT simply a way to achieve “responsible life dreams (ie, home ownership)”, what we’re going through now is bound to repeat itself.

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Live Rent Free!

Learn how to get a 1-3 or even a 6-12 month break from making any mortgage payments by just a simple series of phone calls (to the right person) followed by a faxed form (form included).

P.S.: BUSINESS OPPORTUNITY. Learn how to start a foreclosure clean up business — and get on the road to creating financial security for you and your family. How lucrative is this business? Learn how one foreclosure cleaning biz owner makes up to $40,000/wk.

Copyright © 2009 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author.

Home Foreclosures: Could 2010 Be Worse Than 2009?

With all the recent reports of the recession being over, one could draw a parallel conclusion — ie, that home foreclosures are decreasing.

Unfortunately — NOT!

Home foreclosures continue to rise. This is the bad news. The REALLY bad news is that 2010 could be worse than what we’ve seen to date if common sense (and oh yeah) — some hard numbers — are any indication. For example, in the Boston.com article, Some very ugly foreclosure numbers, the journalist states:

Nationally, foreclosure activity skyrocketed 23 percent in the third quarter over the same period in 2008, RealtyTrac reports. One out of every 136 household across the country got a foreclosure notice or other filing during the quarter – the most since RealtyTrac began tracking these trends in 2005.

These are the hard numbers folks. Now, for the common sense part. In the October 9, 2009 post here, To Stop Foreclosure: Is the Gov’t Mortgage Modification Program Helping?, we wrote:

Homeowners are losing their jobs and this means many of them are no longer able to afford their mortgage payments. Hence, it’s no longer about mortgage fraud and unqualified buyers; it’s the “average Joe with previously good credit” who’s losing his home now.

Until the economy starts to make a REAL recovery with REAL jobs that pay REAL decent wages, we probably ain’t seen nothing yet compared to what’s to come with this home foreclosure crisis.

Related Posts

Home Foreclosure News for 2011 — 100,000 Foreclosures Expected in the First Month of This New Year

 

Foreclosure Clean Up: Why It’s Still a Leading Small Business Opportunity for 2011

 

Home Foreclosure News: 9 Million Homeowners Could Go Into Foreclosure Between 2009 & 2012

 

Home Loan Modifications: 30% of Those Made in 2009 Were Seriously Delinquent or in Foreclosure Process — Lessons Learned?

 

How the Foreclosure Crisis Started: Investors, Speculators, Mortgage Fraud & Lax Lending Standards All to Blame

 

Want a Mortgage? Why It’s Tougher to Qualify Now & Why That’s a Good Thing

BUSINESS OPPORTUNITY: Learn how to start a foreclosure clean up business — and get on the road to creating financial security for you and your family. How lucrative is this business? Learn how one foreclosure cleaning biz owner makes up to $40,000/wk.

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Copyright © 2009 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author.

To Stop Foreclosure: Is the Gov’t Mortgage Modification Program Helping?

Depending on whom you listen to, the government’s “Making Home Affordable” foreclosure prevention program may or may not be working. The lastest statistics show that the program has helped almost half a million homeowners to modify their mortgages, which decreases their monthly payments and allows them to keep their homes.

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HOWEVER, the program’s aim is to help some 4 million homeowners, and critics say the program hasn’t come close to reaching these numbers. And, there’s a greater worry, namely that . . . .

More Home Foreclosures On the Way: Upwards of 12 Million

According to the October 9th BusinessWeek.com article, Home-Foreclosure Rescue Is Falling Short, Critics Say

. . . the [Making Home Affordable] program may barely dent the crisis. Indeed, with estimates that the economic crisis will force as many as 12 million homes into foreclosure, it may not prove enough . . .

Why Industry Experts Believe Home Foreclosures Will Continue to Escalate

Quite frankly, “It’s the economy, stupid,” to use a phrase from an old Bill Clinton campaign. When the whole foreclosure crisis started, it was mostly due to mortgage fraud and/or subprime mortgages (eg, people being put into homes they could not afford). But now, the reasons have shifted.

Homeowners are losing their jobs and this means many of them are no longer able to afford their mortgage payments. Hence, it’s no longer about mortgage fraud and unqualified buyers; it’s the “average Joe with previously good credit” who’s losing his home now. And, while the economy seems to be on the road to recovery, it’s a slow one.

Retraining the American Workforce: Why Some Homeowners Will Lose Their Homes & Their Livelihood for Good

Couple that with the fact that many of the jobs that have been lost are not coming back (eg, manufacturing in middle America), and what you have is an even slower economic recovery for many homeowners. Many of these workers accustomed to working in factories and bring home decent paychecks are now going to have to be retrained for new careers, because again, their jobs have not only disappeared — they’ve disappeared for good.

Unless these workers take the initiative to retrain themselves for new careers, they may not only lose their homes, but they may lose their livelihood for good.

The Bottom Line on the Home Foreclosure Crisis Right Now

Housing prices have yet to recover. Many owners are sitting on houses that are severely underwater (ie, worth much less than what they owe on them and/or paid for them). And sadly, home foreclosures are here to stay for a while.

Business Opportunity.: Learn how to start a foreclosure clean up business — and get on the road to creating financial security for you and your family.

Copyright © 2009 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author.

Foreclosure Clean Up: 3 Reasons to Start This Type of Business

Foreclosure cleanup is a lucrative business to start right now because of the foreclosure crisis that has been sweeping the country since the fall of 2007. However, this is not an “of the moment” type of business. Following are three excellent reasons to start this type of business – no matter what the economy is doing.


1. Foreclosure Cleaning Is Evergreen:
Because this business has the name “foreclosure” in it, a lot of people confuse it for an “of the moment” type of business. But it’s not. Let’s explain.

Foreclosure Cleanup is an Evergreen Business

Foreclosure Cleanup is an Evergreen Business

What are foreclosures? They are real estate properties that have been taken over by lenders because the existing owners have failed to pay their mortgages. The important words in the previous sentence are “real estate.”

As long as real estate is bought and sold, there will be a need for “foreclosure” cleanup companies. Now, we’re in a mortgage crisis, so of course, foreclosures are in the news a lot. But, properties are foreclosed on all the time – no matter what the economy is doing.

So, don’t get sidetracked by the term “foreclosure”. It’s just real estate. And it is bought, sold and foreclosed on every day of the week. This means that it needs to be cleaned, repaired and maintained – every day of the week. In other words, it’s an evergreen business.

2. Competition Is Weak: A lot of aspiring entrepreneurs are jumping on the “foreclosure clean up” bandwagon. But, that’s because it’s in the news right now and many of them are thinking they can make a quick buck.

This means many of them will disappear as quickly as they appeared once home foreclosures are no longer in the news. And, this is why competition is weak.

As with any business, only those who stick around long enough will reap the rewards. Because of the reasons mentioned in the evergreen section above, foreclosure cleanup is a viable business – no matter what the economy is doing. BUT, you can’t hop in and hop out, hoping to make a quick buck.

Every business requires a commitment. Those who reap the rewards of business are the ones who are in it for the long haul.

And while now is the ideal time to start this type of business and perhaps make that quick buck that so many seek, the ones who will really enjoy the fruits of their labor long term are the ones who go into it with the mindset of “I want a viable business I can run for years to come.”

3. You Can Structure It Any Way You Want: The wonderful thing about a foreclosure cleaning business is that you can offer as many or as few services as you want.

This means you can grow your business as slowly or as quickly as you have the resources to. If you can only do minor repairs and lawn maintenance, do that. When you can afford to, then you can offer more specialized services (eg, roof repair, pond draining, electrical wiring, etc.).

Foreclosure clean up is a lucrative, viable business no matter what the economy is doing – if you enter it with the right mindset (ie, for the long haul).

P.S.: Learn more about how to price foreclosure cleaning jobs.

Copyright © 2009 Yuwanda Black for Foreclosure Business News. May be reprinted with the following, in full: Learn everything you need to know about what how to start a foreclosure cleaning business at foreclosed http://Start-a-foreclosure-cleanup-business.com.