Home mortgage defaults, foreclosures ...

Home mortgage defaults, foreclosures may pop S. Florida housing...

There are 219 comments on the SouthFlorida.com story from Jul 28, 2007, titled Home mortgage defaults, foreclosures may pop S. Florida housing.... In it, SouthFlorida.com reports that:

Mounting mortgage defaults across South Florida threaten to hurt more than just those homeowners who lose their properties to lenders.

Join the discussion below, or Read more at SouthFlorida.com.

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do the math

Durham, NC

#230 Aug 6, 2007
140 dollars per sq foot wrote:
<quoted text>
It may not be your mistake, I have posted to an article and it disappears and shows up on another article. A glitch in the matrix. LOL
I see several posts here that appear to be misplaced.
Not only that, but I had one that I entered, but it never showed up at all. I did not know I needed to make backups of my messages!
caml

Tampa, FL

#232 Aug 6, 2007
140 dollars per sq foot wrote:
<quoted text>
It probably got posted to the wrong thread.
Maybe the post monitors are playing havoc w/your posting.
Smisonian

Herndon, VA

#233 Aug 7, 2007
Sure wrote:
<quoted text>
Brian, how do you sleep at night?
What Brian fails to meantion in his pro-Realtor® rant is that in most cases, the short sale is a horrible alternative. Why?
The IRS considered debt-forgiveness as taxable income. So, suppose a f-cked buyer owes $500k on a home and is approved for a $400k short sale. Following a successful sale, the seller will receive a 1099 at the end of the year for the difference -- for IRS purposes, the f-cked buyer just received a $100k in taxable income or a $28,000 tax bill (assuming a 28% tax bracket).
Ouch! How many f-cked buyers are going to be able to pay that $28k tax bill at the end of the year? Unfortunately that bill will need to get paid; it will never get discharged by bankruptcy. This IRS bill could end up haunting the f-cked buyer for years to come. Can we say "garnishmnet" or "asset seizure?"
What's sad is most f-cked buyers enter into a short sale because they are trying to save their credit. However, the short sale and the associated late payments, although not nearly as unfavorable as a foreclosure, will show up in the f-cked buyer's credit report. In addition, if f-cked buyer can't come up with $28k at the end of year to pay the IRS(most f@cked buyers can't), then their credit report will ultimately show the IRS tax lien show. In the end, the combined late mortgage payments, short sale, and tax lien will end up ruining the f-cked buyer's credit any way.
Usually, a much better alternative is foreclosure and bankruptcy. This will allow the consumer to get out of the mortgage WITHOUT the massive IRS levy. In the process, the f-cked buyer can also discharge most of his other consumer debt. Under this alternative, the f-cked buyer may have ruined credit, but he can start with a clean slate and no massive IRS bill.
Banks don't want you to know this because a short sale is MUCH cheaper than the foreclosure process. Realtors® don't want you to know this because they make much more money off of short sales than they do off foreclosures.
So, most bankers and Realtors® never bother to let f-cked buyer know about the IRS rules on discharged debt. There is no law at all the requires bankers or Realtors® to disclose the f-cked buyer's tax consequences. So, they never bother to tell the consumer.
If you're facing foreclosure, whatever you do, do NOT listen to a Realtor® or a banker that tries to talk you into a short sale. Go straight to an attorney or CPA and get their advice.
South Florida Housing Bubble
http://southfloridahousingbubble.blogspot.com
Do not trust the above site. It's a spam.
And it's evil to say foreclosure or bankrupcy is better than short sale or DIL. Simply because it is not. He argues against short sale because of tax burden. And he wants you to go foreclosure or bankrupcy because of tax burden??? ROFL! He MUST know, if tax burden is more serious than foreclosure or bankrupcy-BTW foreclosure and bankrupcy are two totally different animals, you got to pay tax on foreclosure too if the bank decided not to be able to collect from you by informing IRS of their forgiven debt.
What an evil minded person to say foreclosure or bankrupcy is better than short sale, just to advertise his spam website. What a world we live in...
Ben from NYC

Flushing, NY

#234 Aug 7, 2007
All this stuff about the market correction is incorrect. My community is suffering the same scenario with foreclosures lowering the values of genuine home sales....but no investors are snatching them up. Whats happening is that no one wants even the foreclosures!!! This idea that people are going to rush in for foreclosures is wrong.... I see investors holding back.

Since: Jul 07

AOL

#235 Aug 7, 2007
Ben from NYC wrote:
All this stuff about the market correction is incorrect. My community is suffering the same scenario with foreclosures lowering the values of genuine home sales....but no investors are snatching them up. Whats happening is that no one wants even the foreclosures!!! This idea that people are going to rush in for foreclosures is wrong.... I see investors holding back.
"Investors" know that the market is still a long way from hitting bottom.

What you have left are real people with real wages who still look at the prices today and won't buy.

I am still seeing insulting prices. One home had the nerve to ask over $500K and tell you the home needs TLC.

Since: Jul 07

AOL

#236 Aug 7, 2007
do the math wrote:
<quoted text>Not only that, but I had one that I entered, but it never showed up at all. I did not know I needed to make backups of my messages!
I'm in luck!

I'm not crazy!

Thanks for clearing that up.
Sure

United States

#237 Aug 7, 2007
Smisonian wrote:
<quoted text>
Do not trust the above site. It's a spam.
And it's evil to say foreclosure or bankrupcy is better than short sale or DIL. Simply because it is not. He argues against short sale because of tax burden. And he wants you to go foreclosure or bankrupcy because of tax burden??? ROFL! He MUST know, if tax burden is more serious than foreclosure or bankrupcy-BTW foreclosure and bankrupcy are two totally different animals, you got to pay tax on foreclosure too if the bank decided not to be able to collect from you by informing IRS of their forgiven debt.
What an evil minded person to say foreclosure or bankrupcy is better than short sale, just to advertise his spam website. What a world we live in...
I never said that bankruptcies are always better than short sales because, simply put, they are not. There are times that a short sale is much better than bankruptcy.

My rant was simply to inform consumers NOT to trust Realtors® or bankers that try to talk them into short sales. Realtors® and bankers have a vested interest in talking a troubled consumer into short sales and in most cases will make this recommendation without informing the consumer of the possible tax consequence.

Furthermore, they are simply not qualified to assist consumers with important financial matters. Realtors® have no required education beyond a GED (at least here in Florida). Bankers have no education requirements whatsoever.

On the other hand, a CPA or a tax attorney has no vested interest in talking a consumer into any of the options. They will make a recommendation solely based on what is best for the cosumer. Furthermore, CPAs in Florida must have a Masters degree and lawyers must have a JD (most tax attorneys also hold LLMs). They're clearly MUCH more qualified to make recommendations to a troubled homeowners.

Most consumers who are facing foreclosure got there because they blindly accepted the recommendations of a Realtor® or a banker. Should they make the same mistake a second time?

Troubled consumers should learn from their past mistakes and quit trusting salepersons to assist them with critical financial decisions.

Do you think someone facing foreclosure should blindly accept the advice of a Realtor® or should they visit a qualified CPA or tax attorney?

South Florida Housing Bubble
http://southfloridahousingbubble.blogspot.com...
do the math

Durham, NC

#238 Aug 8, 2007
Ben from NYC wrote:
All this stuff about the market correction is incorrect. My community is suffering the same scenario with foreclosures lowering the values of genuine home sales....but no investors are snatching them up. Whats happening is that no one wants even the foreclosures!!! This idea that people are going to rush in for foreclosures is wrong.... I see investors holding back.
The big difference is that regular foreclosures have a value at 80% or less of the home's value. This first round of foreclosures is the speculators that have just abandoned a home with a mortgage that is more than 100% of the home's value. They got out of a bad deal quick, as soon as their interest only loan was not worth paying. Rare is the 80% home in this round of foreclosures. These are the ones that get set to REO status and get bought from the bank. The bank sells them at market value, and eats the loss. Any foreclosure experts out there that can add on or deny what I am saying?

Since: Jul 07

AOL

#239 Aug 13, 2007
Sure, was your mother frightened by a Realtor when you were a baby? Your anti Realtor ranting is just ridiculous.
Blaming a Realtor because your home is going into foreclosure is like blaming a butcher because the steak you bought gave you a heart attack.
Realtors don't make people buy homes, Realtors find homes for people who want to buy one.
Many Buyers who are now facing problems were influenced by the media coverage of the huge increases in value some homeowners were seeing and by the availability of low teaser interest rates. If you want to blame anyone, blame the media "Couple earning $30,000 a year living in $500,000 home" and by "1% mortgages!!! Buy a $500,000 home for $400 a month!" Remember those days?
Then it went like this:
THE FLORIDA MORTGAGE BROKER- THE CYCLE OF LIFE

2000.“It’s a nice, steady business.”

2001.“Things are picking up.”

2002.“Wow, the housing market is going really crazy.”

2003.“Yes..Hold please,Yes....Please hold.....I need help here ”

2004.“Sure, I can get you into a $500,000 home with no income.”

2005.“Hmmm- the Bentley or the Maserati?...Tough call.”

2006.“Things sure slowed down in a hurry.”

2007.“Would you like fries with that?””

Please, put the blame where it lies.
Sure

United States

#240 Aug 15, 2007
Brian Holden wrote:
Sure, was your mother frightened by a Realtor when you were a baby? Your anti Realtor ranting is just ridiculous.
Blaming a Realtor because your home is going into foreclosure is like blaming a butcher because the steak you bought gave you a heart attack.
Realtors don't make people buy homes, Realtors find homes for people who want to buy one.
Many Buyers who are now facing problems were influenced by the media coverage of the huge increases in value some homeowners were seeing and by the availability of low teaser interest rates. If you want to blame anyone, blame the media "Couple earning $30,000 a year living in $500,000 home" and by "1% mortgages!!! Buy a $500,000 home for $400 a month!" Remember those days?
Then it went like this:
THE FLORIDA MORTGAGE BROKER- THE CYCLE OF LIFE
2000.“It’s a nice, steady business.”
2001.“Things are picking up.”
2002.“Wow, the housing market is going really crazy.”
2003.“Yes..Hold please,Yes....Please hold.....I need help here ”
2004.“Sure, I can get you into a $500,000 home with no income.”
2005.“Hmmm- the Bentley or the Maserati?...Tough call.”
2006.“Things sure slowed down in a hurry.”
2007.“Would you like fries with that?””
Please, put the blame where it lies.
Brian,

You're correct; it's not the Realtor's® fault. However, it's also not the the mortgage broker's fault (although I did enjoy the life cycle you wrote).

The fault lies squarely on the shoulders of the buyers and no one else. They were the ones that relied on the advice of Realtors® or mortgage brokers.

Why would someone do that?

First, we both know that the educational requirements for Realtors® and mortgage brokers are nil. Second, we both know that Realtors® and mortgage brokers have a vested interest in putting people into the most expensive homes that will be approved by the lenders.

I simply do not understand why anyone would trust a Realtor® or a mortgage broker to provide them with financial advice on the most important financial decision most people will ever make. I can't explain it -- maybe you can.

Please note that while I rant on Realtors®, I have always used Realtors® to buy and sell my homes. I tried the FSBO route for both buying and selling without any success (most FSBO sellers are simply moronic about their prices).

So, I think Realtors® provide a good service as a salesperson -- nothing more and nothing less. But, trusting one to provide financial advice is simply ridiculous.

And, that's the purpose of my rants -- to make sure people do NOT trust either Realtors® or mortgage brokers for advice.

South Florida Housing Bubble
http://southfloridahousingbubble.blogspot.com...

Since: Jul 07

AOL

#241 Aug 20, 2007
I appreciate your comments Sure - but- why do you think people rely on Realtors or Mortgage brokers for financial advice? No client has ever asked me for financial advice and neither would I presume to give it. If a Buyer asks me to find them a home or a Seller asks me to sell it for them I assume they have already made a decision to Buy or Sell a home.
I don't ask them about their financial situation, I treat them as responsible adults, though if they are not a cash Buyer or already pre-approved for a mortgage I do suggest they talk with a mortage company or broker to find out what they are qualified to buy so we don't waste everyone's time looking at unsuitable properties.
I think you will find most Realtors do the same.
I'm not a mortgage broker so I can't speak for them but I would appreciate knowing if they think they are offering "financial advice" to a potential client.
In my experience, mortgage brokers tell people how much of a mortgage the underwriters will qualify them for and how much it will cost them each month, not whether or not they should buy the home. Would you appreciate being told by a Realtor or mortgage broker that although you qualify to buy a home you really shouldn't buy it?
I think most people would be understandably annoyed if that were to happen.
Are you seriously saying that you only buy or sell a house on the advice of a realtor or mortgage broker? I really didn't realise we had that kind of influence!

“what ,hey try this,ok done”

Since: Dec 06

south florida

#242 Aug 21, 2007
1 million people have been foreclosed on thats 1 million houses and 1 million people thrown in the streets in the u.s.a. since jan 1 2007..and we are still counting..goood luck
FLORIDA BALLOT INITIATIVE

United States

#244 Aug 25, 2007
WE NEED REFORM!

PLEASE PRINT AND SIGN THE PETITIONS AND MAIL THEM TO

Mailing Address:
Florida Ballot Initiative
P.O. BOX 7256 Jupiter
Florida, 33468

Florida can be the first state where one can actually own property. The tax collector levies your property every year, and if you don’t pay, you will face forfeiture and then the forced sale of your property. We can control spending and tax increases by limiting them to increases in population plus inflation, and we can rollback outrageous taxes and budgets to the fiscal year 2000-2001, plus increases in population plus inflation.

Exemptions are now exceeding the total sales tax revenue collected. Florida can expand the base of sales tax by limiting sales tax exemptions that were given as political favors. That extra revenue, and the tax cuts, can be used to abolish property taxes. The most important reason to abolish the property tax is: we should never be forced off our property or out of our home by any form of taxation. The homestead must be protected.

CLICK ON THE LINKS!

http://www.topix.com/forum/state/fl/TN0RA4DMD ...

See the full text and print the petition: http://election.dos.state.fl.us/initiatives/f ...

See the full text and print the petition: http://election.dos.state.fl.us/initiatives/f ...

See the full text and print the petition: http://election.dos.state.fl.us/initiatives/f ...

See the full text and print the petition: http://election.dos.state.fl.us/initiatives/f ...

See the full text and print the petition: http://election.dos.state.fl.us/initiatives/f ...

See the full text and print the petition: http://election.dos.state.fl.us/initiatives/f ...

RICHARD CHARLES ANTOLINES
CHAIRMAN
Pd. Pol. Adv. paid for by the Florida Ballot Initiative, Mailing Address: P.O. BOX 7256, Jupiter, Florida, 33468
FLORIDA BALLOT INITIATIVE

United States

#245 Aug 25, 2007
FLORIDA BALLOT INITIATIVE

Florida can be the first state where one can actually own property. The tax collector levies your property every year, and if you don’t pay, you will face forfeiture and then the forced sale of your property. We can control spending and tax increases by limiting them to increases in population plus inflation, and we can rollback outrageous taxes and budgets to the fiscal year 2000-2001, plus increases in population plus inflation.

Exemptions are now exceeding the total sales tax revenue collected. Florida can expand the base of sales tax by limiting sales tax exemptions that were given as political favors. That extra revenue, and the tax cuts, can be used to abolish property taxes. The most important reason to abolish the property tax is: we should never be forced off our property or out of our home by any form of taxation. The homestead must be protected.

We will be the only state without a property tax or personal income tax. You can get involved. Ballot initiatives cost money to advertise, print, mail, produce, and the county charges money to verify voter’s signatures. Email is the most cost effective way to get these petitions in the hands of Floridians. By forwarding this to all of your friends and by mailing in your signed petitions, you can help a great deal. Please print out as many petitions as you want so your friends can sign them too. If you can, please contribute.

You can send mail to the "Florida Ballot Initiative" at the mailing address printed at the bottom of this paragraph. Contributions of any amount helps, and is greatly appreciated. Checks should be made to “Florida Ballot Initiative”. Donations are not tax deductible. When the people stand together, who can oppose us? Let’s Roll!

Mailing Address:
Florida Ballot Initiative
P.O. BOX 7256 Jupiter
Florida, 33468

CLICK ON THE LINKS!

http://www.topix.com/forum/state/fl/TN0RA4DMD...

See the full text and print the petition: http://election.dos.state.fl.us/initiatives/f...

See the full text and print the petition: http://election.dos.state.fl.us/initiatives/f...

See the full text and print the petition: http://election.dos.state.fl.us/initiatives/f...
See the full text and print the petition: http://election.dos.state.fl.us/initiatives/f...

See the full text and print the petition: http://election.dos.state.fl.us/initiatives/f...

See the full text and print the petition: http://election.dos.state.fl.us/initiatives/f...

RICHARD CHARLES ANTOLINES
CHAIRMAN
Pd. Pol. Adv. paid for by the Florida Ballot Initiative, Mailing Address: P.O. BOX 7256, Jupiter, Florida, 33468
I See It Thisway

Derby, KS

#246 Aug 25, 2007
Who is to blame for the inflated housing values?
Think about it: Who sets the price when a home is listed for sale? Isn't that person called a real estate agent. They usually make a commission based on a percentage of the SALES price, hum. They want to list it as high as they think they can get away with. The home seller goes along, can't blame them for wanting to make a lot of money. We can also blame the buyer who is enough of a pushover to buy a property for a million dollars that sold just 6 years ago for $600,000. Who to blame? GREED
Greed

Miami, FL

#248 Dec 19, 2007
I See It Thisway wrote:
Who is to blame for the inflated housing values?
Think about it: Who sets the price when a home is listed for sale? Isn't that person called a real estate agent. They usually make a commission based on a percentage of the SALES price, hum. They want to list it as high as they think they can get away with. The home seller goes along, can't blame them for wanting to make a lot of money. We can also blame the buyer who is enough of a pushover to buy a property for a million dollars that sold just 6 years ago for $600,000. Who to blame? GREED
Yeah!

“Hmmm”

Since: Nov 07

Atlanta, GA

#249 Dec 22, 2007
People HATE facts wrote:
<quoted text>I'd recommend that you be prepared to rent for AT LEAST 18 MONTHS!
I teach real estate, and that's one of the points I tell the students. Now is a great time to buy and HOLD, but not so much to sell.

For the most part I've been buying property and killing off the interest in my mortgages, so that I can own them free and clear faster.

A good website for this is:
www.EndInterestPayments.com
Christine

Fort Lauderdale, FL

#250 Jun 9, 2009
God people were giving some really bad advice on here. I hope no one listened.

"Dec 22, 2007

People HATE facts wrote:
<quoted text>I'd recommend that you be prepared to rent for AT LEAST 18 MONTHS!
I teach real estate, and that's one of the points I tell the students. Now is a great time to buy and HOLD, but not so much to sell."

“Hmmm”

Since: Nov 07

Atlanta, GA

#251 Jun 23, 2009
Christine wrote:
God people were giving some really bad advice on here. I hope no one listened.
Not sure if you were referring to my comment. If you were, I'd love to hear your opinion of why buying and holding for an investor is "really bad advice".

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