Foreclosures keep mounting in South Florida

Full story: South Florida Sun-Sentinel

In Broward, 4,403 people were either facing foreclosure or lost their homes in January, up from 3,426 last January, the Irvine, Calif.-based company said.
Comments
21 - 40 of 197 Comments Last updated Mar 22, 2013
MOJO

United States

#23 Feb 12, 2009
Not so surprised.Just wait till the end of the year when it will be close to 50% of people losing homes.It will soon feel like a ghost town
hollycow

United States

#25 Feb 12, 2009
we should not bailout losers.
hollycow

United States

#26 Feb 12, 2009
or we should bailout losers so they can do it again.

Since: Jan 07

Hialeah, FL

#27 Feb 12, 2009
I feel for these people, and I realize that they are in a bad situation. But, unfortunately, it's a situation of their own making. I've made really bad trades on the stock market before, why don't a get a bailout on them? I can afford the losses (as can the people you can describe), but I just bet the wrong way. Should I get a bailout?

The issue here is a matter of scope. Homes in FL are going to wind up down about 50-60% from the peak. What can we do to unwind who was, and who was not responsible? How do we decide who to help? And why should we help anyone who just made a bad investment decision? Frankly, I don't think that a single one of these homeowners should be helped.

If, like you describe, they can afford it; then they can still afford it, they can keep paying. If they can't afford it, or don't want to take the loss, that's what bankruptcy/foreclosure is for. They don't have to continue paying on the house, they can just walk away (with a credit hit). There are 2 options to every homeowner; pay or walk; I don't see any need to add a 3rd option.

Also, this should be a lesson for many people. NEVER put down more then you need to for ANY purchase, EVER. If they had bought that home with 0% down they would be in a MUCH better situation today. Buying cars with 0% down is always a better idea (because then you can insure the entire vehicle, rather than take the huge depreciation hit after you roll off the lot). You pretty much always want to take the lowest downpayment offering that will get you the terms that you want, it's much safer to keep the cash and have a larger loan. As your friend is going to find out, getting the cash back is impossible. Dropping the loan isn't all that hard.

Cash is dear, treat is as such.
Have2Agree wrote:
<quoted text>
In some ways you are correct, BUT there are also people who are suffering in a home where they could afford it when they purchased it, they did put 20% down, but because of the irresponsible homeowners around then they are sitting underwater in a home...I don't think its unfair to help those people..I have family in that same situation now in SFL..
BullsBearsPigs

New York, NY

#28 Feb 12, 2009
Homer Simpson wrote:
There are some incredible deals out there right now. We just started looking and there are some places you can buy that the price has dropped in half. Great deals !
Anyone who buys now will lose money! You want to see deals? Wait 2 years and you will be shocked!
john

Fort Lauderdale, FL

#29 Feb 12, 2009
Sure wrote:
<quoted text>
Yeah, incredible to you right now. However, if you buy now, you won't consider your purchase an "incredible deal" twelve months from now when the value of the home you just purchased drops another 20%. It will look even worse two years from now.
Sure, some homes are selling for 50% off of their peak, but you really need to take that in context of what happened in South Florida during the bubble. The houses that are now selling for 50% off their 2006 purchase prices were selling for less than one-third of that in 1999. When they do return to their substainable 1999 values, people like you that are buying now will look like suckers who caught a falling knife.
Quit comparing current prices to prices created by an artificial mania that was fueled by ridiculously easy credit. Instead, compare today's prices to the normal, substainable prices prior to the credit explosion (1999 and prior) and you'll see that prices today are still significantly inflated.
Besides, I am beginning to think that there will be an over-correction even below 1999 prices due to the combination of massive over-building and rapid population growth.
There is little risk in staying on the sidelines and renting for another 12 to 24 months. There's massive risk in buying right now.
And with declining values the local gov'ts are going to have to live with less, not more taxpayer property money.
Arbitrator

West Palm Beach, FL

#30 Feb 12, 2009
Mike Fink wrote:
I feel for these people, and I realize that they are in a bad situation. But, unfortunately, it's a situation of their own making. I've made really bad trades on the stock market before, why don't a get a bailout on them? I can afford the losses (as can the people you can describe), but I just bet the wrong way. Should I get a bailout?
The issue here is a matter of scope. Homes in FL are going to wind up down about 50-60% from the peak. What can we do to unwind who was, and who was not responsible? How do we decide who to help? And why should we help anyone who just made a bad investment decision? Frankly, I don't think that a single one of these homeowners should be helped.
If, like you describe, they can afford it; then they can still afford it, they can keep paying. If they can't afford it, or don't want to take the loss, that's what bankruptcy/foreclosure is for. They don't have to continue paying on the house, they can just walk away (with a credit hit). There are 2 options to every homeowner; pay or walk; I don't see any need to add a 3rd option.
Also, this should be a lesson for many people. NEVER put down more then you need to for ANY purchase, EVER. If they had bought that home with 0% down they would be in a MUCH better situation today. Buying cars with 0% down is always a better idea (because then you can insure the entire vehicle, rather than take the huge depreciation hit after you roll off the lot). You pretty much always want to take the lowest downpayment offering that will get you the terms that you want, it's much safer to keep the cash and have a larger loan. As your friend is going to find out, getting the cash back is impossible. Dropping the loan isn't all that hard.
Cash is dear, treat is as such.
<quoted text>
Good post Mike. It's going to be tough getting mortgage loans with no down payment nowadays. The lowest down payment companies that are still issuing loans are FannieMae and FreddieMac who bumped up their minimum required down payment from 3.0% to 3.5% recently. Most private lenders are asking for at least 20% and some as much as 30% down which means the LTV is only 70 - 80%. It's good that the lenders are finally returning to the old concept of making sure that only those with a healthy bank statement and credit history will now get loans but that also significantly limits the volume of new buyers but it will definitely limit the risk of foreclosure. New buyers are also looking at the falling real estate values, as you mention, and are trying to figure out when the bottom has been reached before they buy. I'm one of those.

I'm a steadfast opponent of bailouts for the very reasons you mention among others. We cannot continue to undue the results of those who took on very high risk anymore than we can repay those who heavily played the Lottery or Powerball and lost, me included.
Donny

Pompano Beach, FL

#31 Feb 12, 2009
Call Barky Hussein Obama. He got Henrietta Hughes a house.
He can do the same for you.
Change.
Hope.
Love.
priceless
kool-aid
heavens gate...

KcK

Since: Feb 07

Plantation

#32 Feb 12, 2009
BullsBearsPigs wrote:
<quoted text>
Anyone who buys now will lose money! You want to see deals? Wait 2 years and you will be shocked!
Yeah, but we need people interested in buying again.

Not that I am thrilled with a government stimulus plan, but one of the few good ideas was the $15,000 tax credit to buy an existing home. Now they scaled that back to $7500, not enough of an incentive to get people to make the leap, in my opinion.
matt

United States

#33 Feb 12, 2009
If you steal a toy from a dollar store you go to jail. If you get big loans from banks with false paper work or appraising the home in higher value get bailed out by government… what is this???

Since: Jan 07

Hialeah, FL

#34 Feb 12, 2009
Or those who bought lots of UYG shares and lost, me included.:)

What makes the market work is winners and losers. If we turn everyone into a winner, everyone loses. It's really just that simple.
Arbitrator wrote:
<quoted text>
We cannot continue to undue the results of those who took on very high risk anymore than we can repay those who heavily played the Lottery or Powerball and lost, me included.
bros

AOL

#35 Feb 12, 2009
all the greddy ones who thought they could keep screwing everyone and getting rich and now taking it in the arse-lmao!!! these dumps in south florida need to drop another 50% to be true valued homes!!!
Somebodyhelpme

United States

#36 Feb 12, 2009
Dryback wrote:
No bailouts. Let the irresponsible dumbsh|ts lose "their" homes that they shouldn't have attempted to buy in the first place. If anyone deserves money, it's the people who have made all of their payments on time, not the losers who instead spent money on cell phones, SUVs, and plasma TVs.
Obviously, Dryback you are not a property owner otherwise you realize that all these foreclosed homes are going to affect your homes worth, and the safety of your neighborhood.
I AM A1ACharles Dammit

Lake Worth, FL

#37 Feb 12, 2009
This is not news.
Dealer

United States

#38 Feb 12, 2009
All best deals will be in 2012. Realestate is a slow death. Stock market a sudden death.
I AM A1ACharles Dammit

Lake Worth, FL

#39 Feb 12, 2009
Donny wrote:
Call Barky Hussein Obama. He got Henrietta Hughes a house.
He can do the same for you.
Change.
Hope.
Love.
priceless
kool-aid
heavens gate...
Got Rush on the brain?

Since: Oct 08

hollywood, fl

#40 Feb 12, 2009
Itzme4now wrote:
....
The biggest part of the problem is there are NO JOBS. What we are seeing now is people who did not overpay for their homes starting to get in trouble because unemployment only goes so far.... Unless we solve the unemployment situation, the market cannot correct itself.
Exactly. An informed voice in the sea of cacaphony.

Many of the people who are losing their houses were not stupid or greedy. Job loss, medical emergency, and loss of partner/spouse are the biggest causes of foreclosure and bankruptcy. Florida has been losing jobs, a lot of jobs, for three years now. How disastrous would it be for the lenders to accept part-payment for the next year or two if it means keeping people off the welfare and Section-8 programs? What are the lenders doing with all the bailout money anyway that they cannot be patient with at least the involuntary/ not stupid/not fraud mortgage defaults?
mastershake

Pompano Beach, FL

#41 Feb 12, 2009
Thank Lord Obama for the pushing the stimulus package that will stop foreclosures and save our economy. Is it right? There is no help for struggling homeowners? Maybe acorn will pay off my mortgage? Whu did I vote fo this idiot?
What

Fort Lauderdale, FL

#42 Feb 12, 2009
Dryback wrote:
No bailouts. Let the irresponsible dumbsh|ts lose "their" homes that they shouldn't have attempted to buy in the first place. If anyone deserves money, it's the people who have made all of their payments on time, not the losers who instead spent money on cell phones, SUVs, and plasma TVs.
OH MY GOD! A NORMAL PERSON IN SOUTH FLORIDA! You better hide they'll find you.
eger

San Antonio, TX

#43 Feb 12, 2009
Dryback wrote:
No bailouts. Let the irresponsible dumbsh|ts lose "their" homes that they shouldn't have attempted to buy in the first place. If anyone deserves money, it's the people who have made all of their payments on time, not the losers who instead spent money on cell phones, SUVs, and plasma TVs.
Maybe the thought never crossed your mind, but people are being laid off in this bad economy. Could you survive a few months with no income? Most people don't have at least 6 mo. of "FU" money saved in their bank accounts in case of an emergency. Now for people who live beyond their means and bought a house when they could not afford it to begin with, let them suffer.

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