Housing downturn bankrupts borrowers ...

Housing downturn bankrupts borrowers -- OrlandoSentinel.com

There are 199 comments on the Orlando Sentinel story from Aug 6, 2007, titled Housing downturn bankrupts borrowers -- OrlandoSentinel.com. In it, Orlando Sentinel reports that:

The housing boom may seem a distant memory, but experts say the real-estate speculation and "creative" financing it generated are now driving many investors and homeowners into bankruptcy, especially in Central ...

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Dave

Walnut Creek, CA

#1 Aug 6, 2007
Why is this news? It is like the stock market of the late 90's. Too many people think their real estate is worth more than it is. Sorry you lose your money on betting that it will go up in value. Sell for less or let the bank take it away!
Star

Deer Park, TX

#2 Aug 6, 2007
I just looked at some townhomes this weekend. The model I looked at was Originally $289,000 for a 3 bed 2 bath. The price is now $220,000 with $10,000 towards closing.

With all the fees and taxes on a 30 year fixed my payments would have been almost $1900 a month. People just don't make that kind of money in this town.
Ohyeah

Ocala, FL

#4 Aug 6, 2007
Land of the Greed. Small house is not good enough. A small car that gets you everywhere an expensive one does is not good enough.$1000 for a little dog because Paris Hilton has one. Boob jobs, tummy tucks face lifts etc.

Unhappy people trying to find happyness through material things.
Tamara

Tampa, FL

#5 Aug 6, 2007
Maybe this is part of the ongoing effort to get people to wake up and get their head out of the clouds.
Star

Deer Park, TX

#6 Aug 6, 2007
Should be plenty of good deals on foreclosures for those of us who held out and rented until the boom went bust! Especially these investor owned homes no one ever even lived in!
Orlando Homegrown

Orlando, FL

#7 Aug 6, 2007
A year ago I sold my beautiful 3/2 1500 sq ft home for $225,000. The original purchase price was $74,000 I dropped the suggested selling price by my realtor about $10,000 to get it sold and got out just as the downward plunge took place in the housing market. I said then that all these folks "Upsizing" to bigger more expensive homes with balloning interst rates would soon be in major financial straights and now it's beginning to come to light. I took part of my "Profit" and purchased a used beautiful Double wide mobile home in a very nice park and pay a small monthly payment for lot rent and water and sewage. The home I now live in is actually larger than my last home and my wife and I thoroughly enjoy it. Are there risks involved? Sure! But at least I'm not staring financial disaster down the throat. I really feel for these young couples that have gambled and lost everything in the process, all that's left is to just start over. At my age I'm just getting too old to rebuild another life!
Buddy

Orlando, FL

#8 Aug 6, 2007
Star wrote:
I just looked at some townhomes this weekend. The model I looked at was Originally $289,000 for a 3 bed 2 bath. The price is now $220,000 with $10,000 towards closing.
With all the fees and taxes on a 30 year fixed my payments would have been almost $1900 a month. People just don't make that kind of money in this town.
Why buy a Townhouse, We have a very nice seldom used Arena for sale with lots of parking for 18 thousand of your friends and family. Asking price 90 million. I will get the city council to wave your taxes for life, And get the taxpayers to pay your mortgage for you.
St Paul

Kissimmee, FL

#9 Aug 6, 2007
Ohyeah wrote:
Land of the Greed. Small house is not good enough. A small car that gets you everywhere an expensive one does is not good enough.$1000 for a little dog because Paris Hilton has one. Boob jobs, tummy tucks face lifts etc.
Unhappy people trying to find happyness through material things.
I like all the little things in life. You just don't know how to have on a good time on this planet!
WTF

Orlando, FL

#10 Aug 6, 2007
Ohyeah wrote:
Land of the Greed. Small house is not good enough. A small car that gets you everywhere an expensive one does is not good enough.$1000 for a little dog because Paris Hilton has one. Boob jobs, tummy tucks face lifts etc.
Unhappy people trying to find happyness through material things.
Gee, I didn't realize that trying to raise one's quality of life and standard of living was an indication of unhappiness...

If everyone was like you and simply "content", nothing would move forward from 1950.
ccc3

Converse, TX

#11 Aug 6, 2007
Why do they report percentages only, instead of numbers? Is up 43% really high, or just a few new folks filing. I hate it when articles obscure the information with shady numbers. I am not saying there isn't a problem - but without something more than percentages given, you will never know if it is really bad, or not. After all, if one person filed for bankruptcy last year, and 2 filed this year - guess what the reported percentage increase in bankruptcies would be calculated at? ;-)

Cmon Sentinel - if you are going to report doom and gloom, at least paint the full picture.
STOP OVER-DEVELOPMENT

Kissimmee, FL

#12 Aug 6, 2007
Look up the word house or home in the dictionary and no where through out its meaning does it mention "innvestment" or to "profit to become rich overnight owning one or many homes". That's what the stock market is for you idiot flippers, real estate investors, real estate agents, mortgage brokers, and builders.
skyla2551

Orlando, FL

#13 Aug 6, 2007
Until the property tax issue and the insurance crisis's is dealt with, Florida will not recover anytime soon. We now have thousands on homes and condos on the market , And many of them are in foreclosure. The prices are still to high for most when you add in taxes and insurance. We are in a Recession here in Florida mostly do to the decline in the housing market. Its going to get much worse, Before it gets any better .
People HATE facts

Orlando, FL

#14 Aug 6, 2007
I just hope it shakes out VERY SOON!

I've had two houses (one as a rental) for almost 7 years (long before this wacko market started).

And fortunately......to my advantage......it's a high quality place in a good neighborhood, and I've kept personal debt to an absolute minimum.

The problem is.....that so many people went OFF the 'rental' option into the purchase they couldn't afford.

Now that they're being foreclosed upon, it should be a bit easier to find a renter (the house just came available after I spent 2+ years totally gutting it and fully redoing it from the storms...new everything).

Fortunately, I planned for this possibility, so I can sit on it empty for up to 18 months before I get into trouble.

I just hate it that all the speculators jacked up the market so badly.

I'll be the first one to admit.....that I had no interest in buying anymore real estate......and even with the impending foreclosure BOOM...I'm still not in the market. These houses are still overpriced.

Meanwhile......I've kept my rental in tip-top-shape, invested in the upgrades, and it's priced right for my area (Kissimmee). Now I just have to find a renter.

I hate speculators...always out for the 'fast buck'. I've invested years, and tens-of-thousands to make my investments the nicest around. I just hope it doesn't come crashing down because of OTHER stupid investors. Perfect example of how a burst water balloon gets EVERYONE wet around it!
People HATE facts

Orlando, FL

#15 Aug 6, 2007
ccc3 wrote:
Why do they report percentages only, instead of numbers? Is up 43% really high, or just a few new folks filing. I hate it when articles obscure the information with shady numbers. I am not saying there isn't a problem - but without something more than percentages given, you will never know if it is really bad, or not. After all, if one person filed for bankruptcy last year, and 2 filed this year - guess what the reported percentage increase in bankruptcies would be calculated at? ;-)
Cmon Sentinel - if you are going to report doom and gloom, at least paint the full picture.
Well...a couple of somewhat related statistics for MY area.....

Between May 15-June 15th....Florida ranked SECOND in the country by zip code for the worst zip codes for foreclosures (SEVENTY TWO!...out of the top 500)

My area...Kissimmee...with only NINE zip codes.....had FIVE of them on that list of the 500 worst! FIVE!

In that list, 977 houses were foreclosed upon during that time frame.
People HATE facts

Orlando, FL

#16 Aug 6, 2007
Star wrote:
Should be plenty of good deals on foreclosures for those of us who held out and rented until the boom went bust! Especially these investor owned homes no one ever even lived in!
True...but the process takes AT LEAST 180 days.....and that's just for the bank to take back the house.....then you have the sales and relisting process.....then the purchase time........you're looking at 12-15 months....from when the folks move out........
Star

Deer Park, TX

#17 Aug 6, 2007
Buddy wrote:
<quoted text> Why buy a Townhouse, We have a very nice seldom used Arena for sale with lots of parking for 18 thousand of your friends and family. Asking price 90 million. I will get the city council to wave your taxes for life, And get the taxpayers to pay your mortgage for you.
good idea, hey maybe we can sell the seats as "condos" where investors buy the individual seats to the arena and own them. They pay an annual fee for the maintenance and upkeep. Speculators can flip them for huge profits!
Orange County Watch

United States

#18 Aug 6, 2007
Property values have dropped but it is not reflected in your tax bill. Most tax bills the value of your property has gone up. Another problem with the taxation system.
Star

Deer Park, TX

#20 Aug 6, 2007
Orange County Watch wrote:
Property values have dropped but it is not reflected in your tax bill. Most tax bills the value of your property has gone up. Another problem with the taxation system.
What is even worse, those who bought in developements a year or two ago (such as the one I looked at, and many others) where the builder dropped prices upwards of 30%. Who ever bought those townhomes at $289,000 saw the value of there property drop by 30%.
Chris

Orlando, FL

#21 Aug 6, 2007
WTF wrote:
<quoted text>
Gee, I didn't realize that trying to raise one's quality of life and standard of living was an indication of unhappiness...
If everyone was like you and simply "content", nothing would move forward from 1950.
Of course not, racing to buy the next fad to show off to your neighbors is the sign of a well adjusted Amuriccan!
very happy

Columbia, SC

#22 Aug 6, 2007
STOP OVER-DEVELOPMENT wrote:
Look up the word house or home in the dictionary and no where through out its meaning does it mention "innvestment" or to "profit to become rich overnight owning one or many homes". That's what the stock market is for you idiot flippers, real estate investors, real estate agents, mortgage brokers, and builders.
some of us have done well, because we made smart choices, did our homework and took a reasonable amount of risk in order to achieve our financial goals. we did it with existing homes, not new homes and have increased our income and assets as a result. i do not think that is greedy or stupid. but shrewd and smart!

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