Foreclosures In Connecticut, Nation A...

Foreclosures In Connecticut, Nation At Record Rate

There are 67 comments on the Hartford Courant story from Sep 6, 2008, titled Foreclosures In Connecticut, Nation At Record Rate. In it, Hartford Courant reports that:

As the subprime lending crisis continues to unfold, the rate of foreclosures and seriously delinquent home loans has reached its highest level on record for Connecticut and the nation as a whole.

Join the discussion below, or Read more at Hartford Courant.

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GEO

Newington, CT

#1 Sep 6, 2008
If you look at the homes that got into foreclosure most were purchased between 2000-2006, In other words they bought a home that was priced too high. Americans seem to want to live beyond their means and then complain when it all crashes down around them. I bet people in foreclosure have other heavy depts to boot? Due to to political races going on they seem to omit the fact that alot of people made poor financial choices. Who is at fault?
GEO

Newington, CT

#2 Sep 6, 2008
If you use your credit cards as a supplement to your income how many years will it take to get yourself behind in bills?
Think about it

Rocky Hill, CT

#3 Sep 6, 2008
Just bought my first house.. woohoooo happy this mess happened. :-)
Think about it

Rocky Hill, CT

#4 Sep 6, 2008
oh any I bought a nice home, but $100K less than what the mortgage company said I could get a mortgage for. When they told me I could get a home for 425K I laughed. Nice new raised ranch for $300 is a nice first home. NO wonder people are in forclosure..
UNCLE SAM IS BACK

Auburn, MA

#5 Sep 6, 2008
Yes but what about senator DUDD and his mortgage? Interesting that he has been the NO. 1 reciever of campaign funds from Fannie and Freddie since 1989. hmm
Grampy

South Windsor, CT

#6 Sep 6, 2008
One should not be surprised with this spike in delinquency rates. For the better part of 2008 state and federal legislatures have been promising programs to help these deadbeats. I suspect many just stopped paying their mortgages just so they would qualify for a bailout.
US Vet

Winsted, CT

#7 Sep 6, 2008
Not to be a pessimist, but wait it will get worse. Town appraisals are pouring in because most are due this year. Home values spiked so high, mostly due to greed of the seller and the agents in general that many people's taxes will spike to almost 50% higher than the previous year. So this coupled with oil and an already high mortgage will only boost the foreclosures in the months to come. Because of the greed of few the American dream of home ownership for many is being stripped away.

One factor would be that when their are many Real Estate agents then homes need to sell more often and at a higher amount in order to put food on the table. Their needs to be a limit in Real Estate agents in a given area, along with less greedy loan officers amoung other things.
Goomba

Coventry, CT

#8 Sep 6, 2008
The government pressured financial institutions to loan mortgage money to individuals who were not fully qualified - thanks Senator Dudd.

I own my ($300k) home free and clear at age 55.
Choices

Durham, CT

#9 Sep 6, 2008
"Think about it", you're right!
When I bought my home in 1996, the mortgage co. and realtors told me I could "afford" 350k. We shook them off and bought a 152,000 home.
My wife and I rented while we saved up 20% down. We put the 20% on a standard, fixed rate mortgage from a credit union. The CU has rewritten our rate twice over the life of the loan, for $500 and the asking. The longest recapture period for the $500 was 9 months. The current fixed rate sits @ 4.9%.
To save the down payment money, we lived on less than we made, and I worked a 2nd job and as much OT as I could. She finished her teaching degree, at a reasonably priced state school (SCSU), while we rented and saved. We paid for her education as she went. I drove a 1985 2WD Toyota pickup with no a/c, a broken driver's door latch release, and over 250,000 miles on the odometer.
Imagine that... A cash down payment, a paid up education from a state university, and a nice home for the last 12 years.
Here in 2008, AFTER the market has dropped, we easily have $200,000 in equity and zero student loan debt. She works with teachers who still owe $150,000 in private school debt 15 years after graduating, yet they occupy the same pay scale.
Choices...
If the gov't bails out the deadbeats, I'm gonna' be pissed.
NBRepublican

Shelton, CT

#10 Sep 6, 2008
Think about it wrote:
oh any I bought a nice home, but $100K less than what the mortgage company said I could get a mortgage for. When they told me I could get a home for 425K I laughed. Nice new raised ranch for $300 is a nice first home. NO wonder people are in forclosure..
$300 for a raised ranch? Is it in the Hamptons??
Shoreliner

Guilford, CT

#11 Sep 6, 2008
Think about it wrote:
oh any I bought a nice home, but $100K less than what the mortgage company said I could get a mortgage for. When they told me I could get a home for 425K I laughed. Nice new raised ranch for $300 is a nice first home. NO wonder people are in forclosure..
A lot of this is due to WJC's decision, abetted by Charlie Rangel, in the early 1990s that home ownership is a right for all Americans.

The current situation in the housing market shows that the extension of credit is a privilege not a right. Those who are fortunate enough to be extended credit also need to know when enough is enough. There is no free lunch.

The housing market will eventually straighten itself out. However, the $300 billion program, championed by Senator Dodd and recently signed by President Bush, will only prolong the agony of the situation.

Government create this mess. Politicians should let the free market fix it.
Shoreliner

Guilford, CT

#12 Sep 6, 2008
Choices wrote:
"Think about it", you're right!
When I bought my home in 1996, the mortgage co. and realtors told me I could "afford" 350k. We shook them off and bought a 152,000 home.
My wife and I rented while we saved up 20% down. We put the 20% on a standard, fixed rate mortgage from a credit union. The CU has rewritten our rate twice over the life of the loan, for $500 and the asking. The longest recapture period for the $500 was 9 months. The current fixed rate sits @ 4.9%.
To save the down payment money, we lived on less than we made, and I worked a 2nd job and as much OT as I could. She finished her teaching degree, at a reasonably priced state school (SCSU), while we rented and saved. We paid for her education as she went. I drove a 1985 2WD Toyota pickup with no a/c, a broken driver's door latch release, and over 250,000 miles on the odometer.
Imagine that... A cash down payment, a paid up education from a state university, and a nice home for the last 12 years.
Here in 2008, AFTER the market has dropped, we easily have $200,000 in equity and zero student loan debt. She works with teachers who still owe $150,000 in private school debt 15 years after graduating, yet they occupy the same pay scale.
Choices...
If the gov't bails out the deadbeats, I'm gonna' be pissed.
Your story should be required reading for all prospective home buyers.

I did the similar thing here and I am determined to payoff the mortgage ASAP and not 'work' for the bank for the rest of my life.
Ripped Off

United States

#13 Sep 6, 2008
No need to worry. President Bush is trying to hold things together long enough for him to get out of office. If you made stupid mortgage decisions, just call the hotline and get a free government bail out. If you have a $400,000 mortgage, and work as a librarian in Chicago, like one lady on CNN did, NO PROBLEM.
SHE KEPT HER HOUSE! The truth is that the bank re-negotiated her mortgage, with Government help. I feel sooooo
good that my tax money went to a good cause.
Long time financial pro

Vernon Rockville, CT

#14 Sep 6, 2008
All the "I'm smarter and harder working than the deadbeats" pontificating is fine & dandy, and you're absolutely entitled to it, but be aware of some "blowback" that will affect you no matter if you're harder working and smarter, or not:
- All the foreclosures ARE affecting property values in your neighborhood. If you're able to stay put & ride it out you're in great shape. If your company transfers you to another location, you're not likely to get anywhere near what you want if you try to sell quickly. I'm working with a lot of very aggressive home buyers - they smell blood in the water! And they're right.
- If your job gets "outsourced" and you have to become an independent contractor, you're hosed. When you become self-employed you basically can't show documented income for 2-3 years, and all the self-employment writeoffs really hurt.
- Similarly, your neighbor who is self-employed or works on commission has a very hard time getting financing unless his/her finances are truly fantastic. "Stated income" loans have taken a big hit, but they didn't all go to phonies -- a LOT went to hard-working people who carry their own business expenses, meet payrolls even when sales are down, etc etc. Be a tad more thoughtful before you assume that low-doc borrowers are deadbeats.
- Be aware of the financial food chain. Taking first-time homebuyers out of the market cuts the demand for small homes. That damages values and in turn cuts the demand for move-up homes. Making it so a lot of people can't buy homes does NOT do your own finances any good.
-If your kids aren't quite as smart and thrifty, don't sell the house quite yet, they may be coming home for an "extended visit". But, then I'm a big supporter of traditional extended families ;)
- You should absolutely insist on vastly increased education and ethics requirements for loan officers. Do you know what, in Connecticut, is the difference is between a female loan officer and a pit bull (including education)??.......
..........Lipstick.
(Unfortunately, the punchline is true.)
SIG

AOL

#15 Sep 6, 2008
It's all George Bush's fault. Once the great community organizer is elected, all problems like this will be behind us. Free healthcare, free education and free homes. Why work?
Long time financial pro

Vernon Rockville, CT

#16 Sep 6, 2008
On news (in the WSJ, not in the Clueless Courant): Fannie Mae and Freddie Mac may be close to government conservatorship:
The government should insist that if they take the risk, they get a big equity position. These actually are businesses that, if they toned down the risk-taking, are great moneymakers and the government could make a lot of money rehabilitating and flipping them. The existing legislation already calls for lopping of current management and banning lobbying, both good moves.
May I point out that lots of people didn't want to "bail out Chrysler" but the government made hundreds of millions of dollars in profit on that deal.
The taxpayer deserves to be on the winning side when they take on risk. Run it with successful businesspeople, not idealogues, and this works.
Truth

United States

#17 Sep 6, 2008
Most of these homeowners should have never been approved for a mortgage above their income level. The lenders and the attorneys who knew this should be arrested for fraud. I strongly disagree with using my taxpayer money to bail them out. It seems people of today want everything given to them hince Obama supporters!! It is not a given right for Americans to own their own home.
FAV

East Hartford, CT

#18 Sep 6, 2008
Shoreliner wrote:
<quoted text>
A lot of this is due to WJC's decision, abetted by Charlie Rangel, in the early 1990s that home ownership is a right for all Americans.
The current situation in the housing market shows that the extension of credit is a privilege not a right. Those who are fortunate enough to be extended credit also need to know when enough is enough. There is no free lunch.
The housing market will eventually straighten itself out. However, the $300 billion program, championed by Senator Dodd and recently signed by President Bush, will only prolong the agony of the situation.
Government create this mess. Politicians should let the free market fix it.
Shoreliner always at the ready to blame the victim, just what Big Brother would want us to believe. The real responsibility goes to Congress and our regulators. During Clinton's watch, his Wall Street honcho Treasury Secretary, Rubin, got legislation through Congress that rewrote securities laws that were put in place after the Great Depression to protect the public from Wall Street's excesses. The dot-com scams were a direct result of this, as managers had even less to fear when "cokking the books". As the investment banks were allowed into insurance and other financial endeavors, they became giants. With the expansion of the derivatives markets, Wall Street has already become the Mother of All Casinos, but they hochos came up with a bright idea. Since the mortgage market is so massive, wouldn't it be nice to be able to securitize mortgages and sell them to investors. We all know the rest of the story, the Investment Banks, like the rest of the Supergreedy on Wall Street, didn't know when to quit a great scam while they were ahead, and got caught with their pants down, and some with tails between their legs scurried over to the Fed's discount window for a bailout. And so it goes in the Mother of all Banana Republics.
Jimmy The Greek

New Haven, CT

#19 Sep 6, 2008
Goomba wrote:
The government pressured financial institutions to loan mortgage money to individuals who were not fully qualified - thanks Senator Dudd.
I own my ($300k) home free and clear at age 55.
That's it, baby! Live at home with your parents until you're 50 then buy your house with cash.
Todd

Hudson, NH

#20 Sep 6, 2008
FAV,

What you don't get is that those "Investors" that were sold MBS, were "demanding" them because they offered them a higher return than say a treasury bill. Was Wall Street supposed to back off this high demand? The investors didn't see the real risk of crashing home prices since they got comfortable with low delinquency rates during the late 90's early 2000's.

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