"...a record 12 percent of U.S. homeowners with a mortgage are behind on their payments or in foreclosure as the housing crisis spreads to borrowers with good credit. The Mortgage Bankers Association said Thursday the foreclosure rate on prime fixed-rate loans...now represents the largest share of new foreclosures. Nearly 6 percent of fixed-rate mortgages to borrowers with good credit were in the foreclosure process." ive also recently read that a majority of ARMs are yet to reset. also, evidently many major banks held off on foreclosing between the election and inauguration so as not to piss off O. they are picking up the foreclosure pace once again.
I'm damn glad my house is paid for. Just hope its values doesn't plummet too badly if I ever have to sell.
What zip code are you in? Most of Baton Rouge is pretty steady. Our house is on a double lot and we elected to sell the extra lot so we ordered an appraisel. We were shocked to see our house had appreciated about 6% in 6 months. The appriaser told us the 70808 zip code in particular and other areas immediately around campus have seen rapid appreciation in the past year.
I got a question, what would happen if the government stepped in and just wiped out bad credit scores, and just reset everyone to good credit or no credit?
It would probably just stop the credit markets in their tracks. We would have to see a return to the lost art of manual underwriting as banks would have to turn to other measures to determine if someone was credit worthy.
I wish I could afford to buy a house right now. Prices can't fall too much more without our entire financial system collapsing. If we collapse, the only direction is up from that point. Or the total collapse of the US. Or global destruction. In any of those cases, there really isn't a much better choice. Perhaps investing in gold?
would that be an alternative, or would there just be too many companies out there that would never be able to collect on lost debt?
Well wiping out credit scores wouldn't wipe out businesses records of someone oweing money. It wouldn't stop them from trying to collect the money that is owed to them.
athens is somewhat like that too. prices havent dropped, but it takes 18 months to sell. if i have to change jobs (very likely), i'll have to separate from the family. new employers are no longer willing to float you a loan til you sell.
I'm afraid I might have to move away from my wife for a little while to find work. I graduated in April and haven't gotten a nibble.
