Check out this map of this one neighborhood of homes in foreclosure

[GmanJoe]

http://www.usatoday.com/news/graphics/foreclosure_map/foreclose.htm

And what\'s suprising is most of the loans are under $200k.

[clips]

That s**t is crazy....there\'s alot of people stressin\' right now in the housing market...and it\'s all because of those interest only loans....when i was processing my loan they mentioned the interest only option,...and i admit i didn\'t know what it was until they explained it to me, but when they did, i rejected that option in a heartbeat....i also made sure they gave me a fixed loan...none of that crap where your loan interest varies on a daily basis(adjustable rate) because you could end up paying more or less on your mortgage depending on what the the interest rate is for that month...just crazy...

All those folks  had a low monthly mortgage because of them only paying interest,...now two years later when the principle of the loan kicks in, some people mortgages are going up anywhere from $500 - $1000,....and with gas prices and everything else, people are foldin\'....i know people have to be aware, but i\'m sure some banks probably wasn\'t bein fully honest when explaining the interest only option, and were only interested in putting people into homes....but now the housing market is a mess....

I currently own my second home, both loans were fixed 30 year mortgages.  They always try to sell you on the interest only or the 80/20 loans... trading off mortgage insurance for a 20% ARM.  I got a friend who has a 20% ARM and it is KILLING him and his wife right now.  They are dumping all their money into that 20% to get it paid off as soon as possible.  I have mortgage insurance on my loan.. but I\'d rather deal with the extra $40 bucks a month on my mortgage vs. an unpredictable adjustable rate... (my buddies rate has more than doubled).

I would never recommend anyone to go with anything other than a fixed rate loan.  Sure it "could" go down with adjustable rate, but something as big as an investment as your home is never worth that risk.  I can rest easy at night knowing that my mortgage payment is only going to go down, never up.

Yea, I honestly don\'t understand the appeal of the adjustable rate.  I myself, like a peace of mind knowing what I owe and knowing that it is going to be the same no matter what.

tip of the day

Never buy a house you can\'t afford... and if a loan officer tells you it\'s possible, but common sense dictates otherwise.. go with common sense.  I mean, what the hell did these people think?  That they would never have to pay down principal in addition to the interest?

People are gullible and stupid... banks want to rape you for as much as possible when you go in for a loan, hence why the push the "sexy" loans and find a way to shoehorn you into a house you really can\'t afford while they strive to be the #1 loan officer in their company to get the fat bonus check.

Also translated into.

Tip of the day.

Just use common sense.

:thumb:

[Viper_Fujax]

my brother and his gf were looking at buying a house a while ago, and a "family friend" of my brother\'s gf (i dunno if she was a loan officer er what that made her at all credible) said to declare bankruptcy in order to buy the house..that wouldve ruined them for 30+ years.

but because buying a house in san diego is impossible, ill probably end up moving north when i decide to buy one. depends how getting a job goes

tip of the day

Never buy a house you can\'t afford...

Makes me glad I\'m poor

[Titan]

Also translated into.

Tip of the day.

Just use common sense.

Unfortunately a lot of people don\'t have that

[clips]

Is this going to be the new trend with frustrated home owners?....


http://www.wyff4.com/news/15776757/detail.html

[videoholic]

We have interest only on our old home.  Our payment was 325 a month.  We used the extra 800 a month to invest in the property for the house we own now.  We were paying 2.5% interest when we first got the loan and as the economy started to die it went up to I think 7 eventually.  It\'s now back down to 3.2.  Interest only gives you a great opportunity to invest.  If you are using interest only to allow you into a house you can\'t afford, then well you are an idiot.
Tthat house was only 90k...  I couldn\'t imagine doing it with my house now.

BTW, we still own the other house.  Our payment right now is 350 a month and we are renting it for 1200.

Foreclosures in that community are probably unsold houses from the developer.  Looks like a very new development.  Apparently builders are letting houses get foreclosed so they can rebuy them for a lesser rate.  That\'s what I heard from a builder last week.  No clue if that\'s really correct.