Comments on: Subprime Loans Lead to High Foreclosure Rate in Massachusetts http://www.therealestatebloggers.com/2007/03/05/subprime-loans-lead-to-high-foreclosure-rate-in-massachusetts/ Real Estate Blog, Mortgage, and Development News Sat, 20 Mar 2010 11:25:08 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: btr http://www.therealestatebloggers.com/2007/03/05/subprime-loans-lead-to-high-foreclosure-rate-in-massachusetts/comment-page-1/#comment-57417 btr Tue, 31 Jul 2007 21:49:50 +0000 http://www.therealestatebloggers.com/2007/03/05/subprime-loans-lead-to-high-foreclosure-rate-in-massachusetts/#comment-57417 there is plenty of blame to go around in the current troubles in the mortgage market. Countrywide's announcement last week demonstrated that not just poor people got hosed - there were plenty of upscale folks seeking to make the next social jump that are now seeing their home values flat or sinking while their monthly payment takes a big jump. for a while now, all the focus has been on the subprime market and how 'those people' should never have been allowed to borrow the way they did. Expanding opportunities for homeownership was an initiative that started with Clinton/Cisneros back in the 90's and, since it was highly profitable, grew even more under the Bush crowd. The numbers you see are that a disproportionate share of foreclosures are in the subprime loan pool. Duh - that's like saying a disproportionate share of drownings are among people who don't swim well (or at all). Ten folks in the pond, half swimmers, half not. Three non-swimmers drown, one swimmer. The headline reads "Aquatically-challenged suffer disproportionately" The more interesting numbers that don't make the news are the percentage of subprime borrowers for the entire period (almost a decade) who did NOT have problems making their payments and who never would have been able to buy under the old guidelines. In an effort to protect people against greed - others' and their own - well-meaning officials are likely to reduce those opportunities. All because of the wrong denominator! there is plenty of blame to go around in the current troubles in the mortgage market. Countrywide’s announcement last week demonstrated that not just poor people got hosed – there were plenty of upscale folks seeking to make the next social jump that are now seeing their home values flat or sinking while their monthly payment takes a big jump.

for a while now, all the focus has been on the subprime market and how ‘those people’ should never have been allowed to borrow the way they did. Expanding opportunities for homeownership was an initiative that started with Clinton/Cisneros back in the 90’s and, since it was highly profitable, grew even more under the Bush crowd.

The numbers you see are that a disproportionate share of foreclosures are in the subprime loan pool. Duh – that’s like saying a disproportionate share of drownings are among people who don’t swim well (or at all). Ten folks in the pond, half swimmers, half not. Three non-swimmers drown, one swimmer. The headline reads “Aquatically-challenged suffer disproportionately”

The more interesting numbers that don’t make the news are the percentage of subprime borrowers for the entire period (almost a decade) who did NOT have problems making their payments and who never would have been able to buy under the old guidelines. In an effort to protect people against greed – others’ and their own – well-meaning officials are likely to reduce those opportunities. All because of the wrong denominator!

]]> By: Ernani Uchoa http://www.therealestatebloggers.com/2007/03/05/subprime-loans-lead-to-high-foreclosure-rate-in-massachusetts/comment-page-1/#comment-36352 Ernani Uchoa Tue, 06 Mar 2007 14:47:56 +0000 http://www.therealestatebloggers.com/2007/03/05/subprime-loans-lead-to-high-foreclosure-rate-in-massachusetts/#comment-36352 There are many people loosing their homes due to unpaid mortgages. The property prices are decreasing as the latest report are showing. Will people get less money for their properties now? I guess the default rates are going to decrease a bit now. http://www.mostlyforeclosures.com/ There are many people loosing their homes due to unpaid mortgages. The property prices are decreasing as the latest report are showing. Will people get less money for their properties now? I guess the default rates are going to decrease a bit now. http://www.mostlyforeclosures.com/

]]> By: Ed http://www.therealestatebloggers.com/2007/03/05/subprime-loans-lead-to-high-foreclosure-rate-in-massachusetts/comment-page-1/#comment-36301 Ed Mon, 05 Mar 2007 23:51:22 +0000 http://www.therealestatebloggers.com/2007/03/05/subprime-loans-lead-to-high-foreclosure-rate-in-massachusetts/#comment-36301 this is a huge issue in the midwest as well. I have also seen an increase in the lawsuits and class actions against banks for deceptive advertising of loans and their benefits. Not a good time to be over extended. Arizona has quite a bit of legal activity as well. My guess is that some one in the Mass area is going to start the legal bandwagon as well <a title='RopenHouse.com' href='http://www.ropenhouse.com' rel="nofollow"> - ROpenHouse </a> this is a huge issue in the midwest as well. I have also seen an increase in the lawsuits and class actions against banks for deceptive advertising of loans and their benefits. Not a good time to be over extended. Arizona has quite a bit of legal activity as well. My guess is that some one in the Mass area is going to start the legal bandwagon as well

– ROpenHouse

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