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February 15, 2007
Today's Real Estate Market - What do you think?
In my travels around town and surrounding communities I've noticed more and more homes that have gone into foreclosure. You can hardly miss them, windows posted or boarded up. Not to mention the long lists in the paper or online sites.
Has the market topped out?
Is the Economy to blame?
Are people getting in over their heads?
Are the Mortgage companies relaxing their once strict guidelines, becoming more like auto loan companies where just about anyone can get financing?
Who/What's to blame if anyone/anything?
I've also noticed the cost of rentals have also skyrocketed over the last few years.
Is all this good or bad for our community?
Open for discussion, what are your thoughts?
Posted by judy at February 15, 2007 09:54 PM
Comments
dontmakemelaugh
You brought up two very good points.
The good ole lease to own is good for no one but the seller, think about it, like you said most times the price is well above any reputable appraisal. And the potential buyer believes while living/renting that the home will be theirs and starts pouring money into the home in maintenance, updating, repairing, and upgrading the value of the home and making it a place they will be glad to call their home. When all is said and done they can't get a mortgage and out everything they've put into this home, the seller wins, the potential buyer moves on and the cycle starts over again. It's sad but happens all the time.
Posted by: Judy at February 16, 2007 08:24 PM
"Personal responsibility"
What a concept.
"It is as simple as this; live on less than you make, plan each month by using this thing called a budget, and save for a rainy day."
Live off 75% and save 25% your income. But at this day and age it's all about "Look what I've got".
"Are people getting in over their heads?"
This is the main reason. If your living from paycheck to paycheck your in too deep.
Posted by: jwmason at February 16, 2007 05:20 PM
One of the problems is the ARM. Some mortgage companies offer these to people who have trouble financing a home. Then when the lock in time runs out and their payments jump way up they find they can not meet the payments.
Another problem is the "rent to own" terms.
Example: Someone wants to sell you a house for $95,000.00 and the rent will be $1000.00 a month. Lets say $500.00 goes toward the rent and $500.00 goes toward the price of the house which is fine until the renters decide to go to the bank and get a mortgage. They find out the house will not appraise for what is left owing on it. They can't get it financed and they lose all they have paid on the house. I have 2 friends this has happened to. Very sad. If you take a deal like this be sure to get an appraisal on the house FIRST or ask the landlord to show you an appraisal.
Know what you are getting into BEFORE you sign on the dotted line.
Posted by: dontmakemelaugh at February 16, 2007 12:50 PM
The blame is not to be put on anyone but the owners of these homes. The owner signed up for the deal but has not lived up to their end of the agreement.
It is as simple as this; live on less than you make, plan each month by using this thing called a budget, and save for a rainy day.
Personal responsibility!
Posted by: chris at February 16, 2007 10:26 AM