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Home foreclosures up 51 percent here

A cooling housing market here may be good news for buyers, but homeowners facing debt woes may be more likely to find themselves in foreclosure. Pima County had 1,427 foreclosure filings in the first quarter of this year, up 51 percent from the same period in 2005, according to RealtyTrac, a firm that tracks foreclosures nationwide

May 1, 2007 @ 1:14am
We were considering a home purchase, but with a forecast of a 13.4 percent drop, we'd be stupid not to wait. Why pay 300K for an overpriced home that'll be 40K cheaper in a year? Just doesn't make sense to me.
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May 1, 2007 @ 5:14am
It's too bad that foreclosures are so high, but lenders do not try to work with the home owners so they can keep the house. It would be to the advantage not to have a foreclosure, but the other side of the coin, mortgage companies put the homeowner into a situation that may result in foreclosure. Banks and mortgages companies are so hungry for the dollar that they will give anyone a mortgage.
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May 1, 2007 @ 6:09am
"overvalued and unaffordable homes in the local market"

So if they are so overvalued why aren't our property taxes going down? Let's get the City to lower the valuations to where they belong. I know of several people that will NOT purchase property residential or Commercial in the City due to the ridiculous taxes.

We can also thank the "flippers" from California for buying up the bottom of the houses here, remodeling them and selling at an inflated price to turn a buck. I'm all for making money, but this particular group has done more to inflate the home valuations than anyone else.....every other home bought in my area have been turned into rental units which, in my opinion, have destabilized the neighborhood and driven prices up...
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May 1, 2007 @ 6:33am
*The sky is falling!*

Wise up. This is a great time to buy a house. Selection is great and mortgages rates haven't been this low in generations.

But you go ahead and believe the sensational headlines. Wait a few years. Take whatever hasn't been picked over and pay whatever rates are being charged then.

And don't forget to blame somebody else because you're not happy with it.
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May 1, 2007 @ 7:11am
Cool graphic Tucson Citizen (the map with the areas of foreclosure). I find my self coming here more and more over the Daily Star.
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May 1, 2007 @ 7:13am
#2 Ralph, the mortgage company did not MAKE them buy the house. It is the borrowers fault for borrowing when they cannot afford it. Just because you can do something doesn’t mean you should. We all need to take responsibility for your actions. If they did not know the risks when they borrowed, that would be their own fault.
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May 1, 2007 @ 7:28am
*SHOCKED! SHOCKED I TELL YOU*

Greed gets them every time.

Oh... and according to the Realtors Association, this was NEVER supposed to happen.
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May 1, 2007 @ 7:47am
This quote by Alexis de Tocqueville ( from his book _Democracy in America_ ) might make you think twice about our fetish for material goods including real estate. "It is odd to watch with what feverish ardor Americans pursue prosperity. Ever tormented by the shadowy suspicion that they may not have chosen the shortest route to get it. They cleave to the things of this world as if assured that they will never die, and yet rush to snatch any that comes within their reach as if they expected to stop living before they had relished them. Death steps in, in the end, and stops them before they have grown tired of this futile pursuit of that complete felicity which always escapes them."
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May 1, 2007 @ 8:07am
Why blame the lenders and mortgage companies? A budget is a relatively simple thing to work out. If one can't figure out a budget, than one probably doesn't have the fiscal know-how to buy a house. It's really easy to blame someone else when one can't plan for one's own future.
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May 1, 2007 @ 8:08am
I have spoken out on this several times, mostly on the idea that people are responsible for what they do, including reading and understanding a contract before signing it.

Since I started looking into this, I have spoken to several who find themselves looking at foreclosure. None of these individuals wanted to go on record over their situation, but let me offer one example. No real names are used.

Ralph and his wife wanted a home of their own. They both work with an annual income of $40,000/year combined. They looked at many homes in their price range and were having a problem deciding. At the same time, homes were being snatched up faster than they could decide. Many times they went to make an offer only to see the house was no longer available

They went to a new sub-division where they talked to the salesman. The homes were selling for over $300,000. They said right from the beginning they could not see how they could afford such a home, but, the salesman was good!

With nothing down, closing costs rolled into the mortgage, no payments for three months and no interest for the first year, all Ralph could see was $400.00/month mortgage payments.

Others warned Ralph against signing. "If it is too good to be true, "they all told him, "It probably is!"

Now, after the first year is gone, the interest kicking in at over 12%, deferred expenses applying, the mortgage payments are now almost $1800.00/month, and they cannot afford the payments.

Ralph looked into selling, but he found the house was now only worth $240,000, far less than what he owes.

So, who's fault is this? I would blame everyone involved, but mostly Ralph!

The finance company surly knew that Ralph could not afford the home, so why did they approve him? They should not have.

Why did Ralph think he could afford the house? While he did know that eventually he would have to pay the interest and that his payments would go up, he never did the math to see exactly what that amount would be. He also never used a lawyer who would have told Ralph this was much more house than he could afford.

In fact, Ralph admits that when going over the terms of the contract, all he could think of was that this beautiful home was going to be less than what he was paying in rent, for the first 15 months anyway.
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May 1, 2007 @ 8:08am
I remember the housing collapse in Houston about 20 years ago; it happened the exact same way. If you can go back to the archives of this blog you will see what I said.


This is predictable when you use "projections" as a basis for markets. Our Politicians and builders got greedy, projected a rise in population, started over building and are essentially killing the market.


A planned community in Benson (which would multiply the population there 6 fold) has been scrapped. A 13% drop isn't terrible considering the gains, however a drop of 150% or more, might be possible is houses keep going up at a ration of 5:1 with buyers.


#8 wtf does that have to do with the price of tea in China? Americans shouldn't strive to live in homes or own cars. I guess we should either live in caves or be more like the former (and again upcoming USSR) and drop our motivation to do anything but collect a government check by working a government , drink vodka to hide our pain and wait to die?


Sorry if the American dream was so bad why is everyone trying to get here and or live it including the guy you quote? After all, he didn't write his book(s) to stay broke and live in a cave.

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May 1, 2007 @ 8:23am
Let's not apportion some of the blame to the Real Estate Agents, Title Companies, and Appraisers. These leeches contribute nothing...but suck an ever increasing percentage of each transaction for their dubious contribution. It is to their advantage to have prices constantly increase.....7% of 200k is preferable to 7% of 100k, right? SO..the fiction that these leeches work, in any way, for the home buyer is a fallacy. ALSO....let's not leave the government alone in their collusion..they also benefit greatly from the revenue generated by incresing property values, why would they attempt any regulation which may throttle back their windfall?
The average man...poor uneductated bastards...is just a victim waiting to be skinned by these predators.
HANG ALL LAWYERS!
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May 1, 2007 @ 9:06am
thats why I was afraid to buy, what if something breaks? I wouldnt have the money to fix it. The payment alone would kill me.
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May 1, 2007 @ 9:50am
Lila S., There are deals out there for everyone, but you are absolutely correct in being concerned over the cost of ownership.

Many of those who are suddenly in over their heads bought much more home than they could afford, not only to purchase, but to actually own.

You must take into consideration things like interest, insurance, utilities that may now be included in your rent, (sure, you are paying them anyway, but for most, if you do not see it, you are not paying it, right?) taxes, repairs and maintenance and more.

Before even looking for a house, you need to know what you can afford. If there are no homes in your price range that meet your desires, put off buying until there is.

Many lenders try to downplay the importance of the interest rate, but this will have a huge impact of the overall cost of the home. If you refuse the rate, and the lender really wants to close the deal, they will come up with a better one.

If your credit is so bad that you cannot get a reasonable interest rate, fix your credit before buying a home. This is not as hard as people like to think it is.

Maybe you cannot afford the home you would like, but you really want to buy a house of your own, buy something smaller and save your money. In a few short years, not only will you be in a better position to purchase a better home, the equity you build in the currant home will help make the better home more affordable.

The bottom line, buy with your brain, not your heart. No one can take advantage of the smart buyer.
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May 1, 2007 @ 9:56am
Ralph A., I want to apologize to you. When I made up the name I used in my example, I had not seen your name. I would hate for people to think I was talking about you.

Your point about lenders not wanting to work with people is accurate, but not completely so. Sure there are many who refuse to listen, but more often than not, it is the homeowner who does not contact the lender when they see they have a problem.

If you have a good lender, they have programs to help so as to avoid foreclosure. Among them are things like interest deferment, or other means to put off a large portion of the payment until the homeowner gets back on their feet. All the monies will eventually have to be paid, but it is better than the consequences.

The first step is to contact the lender. You have to make the first move.
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May 1, 2007 @ 11:11am
When I think back to the insane home prices a couple of years ago, I visual a bunch of greedy and lazy jackals feeding a frenzy just for the unrealistic reaping of gargantuan profits with little to no work. I feel for those who fell for the "realtor" doublespeak, yet we are all adults and should take some responsibility for our actions. However, those of you who have unfortunately fallen upon hard times rest assured many of these greedy jerks who descended upon Tucson and destroyed most residents' dreams of owning a house are now languishing in huge debt and looking at a "money pit". This is going to be a long ride down I fear.
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May 1, 2007 @ 12:36pm
Blame realtors for telling people that they can sell their house "and take the profit.

Blame real estate appraisers for taking referrals from realtors and loan officers, then caving to the pressure to appraise at an inflated rate.

Blame loan officers for being greedy and re-financing loans that didn't need to be financed, and blame them for doing questionable loans to people that couldn't afford them.

Blame new home builders for selling to anyone that could fog a mirror. When sales were greater that 70% to "investors" they should have known.

Blame investors for thinking that "you can't lose money in real estate"

Blame overzealous buyers for extending themselves beyond their means.

Blame yourself for not looking at these OBVIOUS signs and taking the appropriate measures.
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May 1, 2007 @ 12:38pm
#4 - Steve H you must be a realtor, a loan officer, or trying to sell you junk house.

Wise up, look around you, and stop trying to change what's happening with your dumb optimism.
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May 1, 2007 @ 12:45pm
The only person to "blame" is the person that signed the agreement to pay for the house! If your so easily led around by builders, loan officers, real estate brokers etc. you deserve to go belly up! I'm sorry, the buyer should have enough intelligence to know if they can repay the loan or not!!

You always look at "the worst case scenario" and decide if it's a risk for you....if it is, don't sign those papers!! It's about time people started admitting to their own faults and not looking for someone else to blame.....much like the SUV drivers now trying to dump their gas sucking vehicles....if you can't afford the gas don't buy one!
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May 1, 2007 @ 12:50pm
Hello to all. I don't agree with Ralph A. on banks and mortage companies wanting to grab a buck. It is very difficult right now to get a loan, especially a bank. These companies are fully aware of the housing market woes and are being very carefull of who they give money to. There is a big difference on what a salesperson says versus the lending companies. Keep your eyes wide open and stay within your budget.
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