A large majority of the foreclosures are located in only 5 states. The usual suspects are California, Nevada, Arizona, Florida, and Michigan. Obama is using these foreclosures to claim this is the worst economy since the Great Depression.

Do you think the rest of the country should pay for the volatile housing market in these states?

THE FORECLOSURE FIVE - New York Post

I used to live in California. Home prices have been out of control there for decades. A home that cost $30,000 in the 70s was worth $500k at it's peak last year. Now you can get the same Stucco wood frame 1300 sq ft 3 bedroom home with 1 bath and no garage and no AC for an affordable $350k. Here in TN $350k will get you an all brick 3500 sq ft mansion with a 3 car garage central heat and air.

In California disposable income is a thing of the past for most people. At least half of their income goes to paying rent or a mortgage. For most long term loans this would disqualify most borrowers because their dept/loan ratio would be too high. But people need a place to live.

So inflated home prices are the cause of this crisis, not evil traders on Wall street or "Predatory Lending Practices" by evil banks as the Democrats are trying to tell us.

I would be willing to bet that nearly half of the foreclosures are in California.

Are we going to let the conduct of these 5 states dictate what we do in the rest of the country?

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It's hard to stay mad at someone who makes you laugh - Jay Leno

Sorry dude. The city that I live in has the highest foreclosure rate in the nation per number of houses built. We {my girlfriend and I } are not one of them. We saved money when times were good for times like this. I don't think that the govt. should bail out homeowners in any case. But by your scenario, everyone who lives here should be punished because of some folks bad financial decisions. Go for it, but don't expect my support if Tennessee's economy goes in the crapper.

I hate to say it Mud but it is a national problem. The states you mentioned are just the worst of them. If you think your area has been spared you are being delusional. And I mean that nicely. We are amazed at the values that we get back on our assets. So are our clients in many cases. Most have at least moved past the denial stage they were in a few months ago and are accepting that their house has dropped a fair amount in value. Some areas are worse than others but you can count on one hand (and even be missing a few fingers) the areas that have not been effected at all.

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"If you think about it, UPS and FedEx are doing just fine," he said. "It's the post office that's always having problems." Barack Obama on government run healthcare. 08/11/2009

American by birth.
Conservative by the grace of God.

Still sore about the war of northern aggression.

Maybe you misread something in my post.

I gave you no scenario and I didn't say anything about punishing anyone.

I merely posted the facts. Florida, where you live, is one of the states mentioned.

What do all of these states have in common?

High illegal alien populations (Not so much in Michigan). Low wage scales because of the massive influx of undocumented workers driving wages in the state down, inflated home costs. Everyone is broke and many have their life-savings tied up in their homes. Michigan has massive layoffs because of the auto industry nearly going under.

I know what the deal is. You don't need to tell me.

Why do you think I left?

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It's hard to stay mad at someone who makes you laugh - Jay Leno

So I'm delusional. And you mean that nicely.

Sorry, everyone is entitled to their own opinion.

Don't you think you might want to try living in one of those states like I have before you start calling someone delusional?

I never said that some areas weren't totally uneffected. Just some states are effected more then others for reasons only locals know........and anyone who has lived in one of those states knows that this isn't the first time in the last 30 years that this has happened. It happened in California in the 80s. The value of homes crashed in the 80s then went even higher in the 90s and in the last 7 years. The economy right now, according to the article, seems to be highly regional. Everyone feels the pinch because they see it in the news every day, but don't you think a great deal of this is Obama and his media taking us for a ride? Obama joked about them having a Conga-line going last night at their White House corrispondent dinner. They sure seem to be enjoying our suffering for some strange reason. The news is full of doom and gloom and yet Obama and the Dems are partying like it's 1999.

My wife and I have been in the Real Estate sales and investment Loan business for about 30 plus years. The foreclosures aren't effecting us here as much as other states.

The lowering of the value of your home doesn't effect you unless you plan on selling it in the next couple of years. It will go back up in value. Just wait long enough. The only people that this will effect is those in transition or deal in investment properties. Real Estate is one of the most stable investments you can make. Always remember to buy low and sell high. Right now is a boone for the rich. People are buying up properties from all of the suckers and will sell in the next 5 years for a huge profit. Banks are buying other banks and they'll be making tons of cash if they time the market right.

Yeah, I'm delusional.

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It's hard to stay mad at someone who makes you laugh - Jay Leno

What?
I live in Indiana, and my home (so far) has dropped about right at 25%....it is a national problem.

Foreclosures. The post was about foreclosures, not just home values.

Is the lower value of your home causing you to default?

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It's hard to stay mad at someone who makes you laugh - Jay Leno

How do you know the value of your home has dropped?

Have you had a CMA done lately?

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It's hard to stay mad at someone who makes you laugh - Jay Leno

Don't need to...the counties do assessments for tax purposes. Our house went from a high value of $485,000.00 down to $295,000.00. Of course, they didn't lower our property values, they just raised the value of the LAND to compensate.

There are plenty of homes for sale around these parts, but in our "subdivision" we've only had 1 foreclosure, and surprise, surprise...the house was owned by the only hispanic family we've ever had in the neighborhood, and based on statements made by their former next-door neighbors, their citizenship status was questionable, at best.

I know how the county assesses property. It's really nice for your local government to do you a favor and lower your taxes. This is rare. However.....

It's not accurate. What they assess your property at is not the same as what you'll get on a detailed appraisal when you get ready to sell or just if you do a CMA.

Besides, I was asking him. What's happening in your area is quite different from what is happening in his area.

And, once again, I repeat, the original topic was about foreclosures.

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It's hard to stay mad at someone who makes you laugh - Jay Leno

I guess you missed the line where it said they didn't lower our property values, they raised the value of the land to compensate. No lower property values = no lower taxes.

What they did here in Stafford Co. was modeled after what other states were doing, so I do think its evidential, especially since his comment was that his home value has dropped 25% and you asked how he knew that, and if he'd had a CMA done

Just because you don't like the answers you get doesn't mean the answer wasn't correct.

I personally know my bank President, I was curious what my home value is - as I have been thinking of moving out of the city.
They did an appraisal, and this is what they came up with - I have been looking at comparable homes for the last few months - and noticed price reductions in the advertisements which got me worried.
My worries were founded.

I doubt Obama's foreclosure forgiveness plan is motivated by a genuine desire to help the bleeding;

most likely, it's merely part of a desperate attempt to restore value to the MBS (and their derivatives) held by banks.

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You're certainly correct about the foreclosure problem by itself.

It is much worse in the states you mention, and the central focus is on Las Vegas, Phoenix and the most overbuilt areas of central and southern California and southern Florida.

But the foreclosure problem is only the most extreme manifestation of a nationwide housing depression. The larger issue is the general and sustained - - and continuing - fall in the value of housing, and that is nationwide.

Housing prices have fallen - and are falling - in every major urban area and in every state. States like Oregon and Idaho are now seeing a surge in foreclosures. The ongoing credit crunch and the banking paralysis are making it much worse and rising unemployment is simply adding to it.

Here is an interesting story from CNBC today: Housing Prices Tumble 18.5% to Another New Low - Real Estate * US * News * Story - CNBC.com

Housing prices fell 18.5% from December 2007 through December 2008. So far, they have fallen a total of 26.7% since the peak in the summer of 2006.

It is estimated that the total drop in prices will be a stunning 42% by the time the bottom is reached.

That will only bring us back to the pre-bubble trend line. And that is all over the nation.

The only positive aspects to this very grim story are that

1. We are about two thirds of the way through the collapse

2. Housing will be a buyer's market for many years to come when this implosion finally ends.


So I think you are making accurate observations, but your conclusions are not comprehensive enough.

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My good blade carves the casques of men,
My tough lance thrusteth sure,
My strength is as the strength of ten,
Because my heart is pure.

"Sir Galahad," by Alfred, Lord Tennyson (1834)

Why let forclosure become a problem? Just get your local ACORN office to send out a rep with a set of bolt cutters:

FOXNews.com - Arrest Made in Home Foreclosure Civil Disobedience Program - Local News | News Articles | National News | US News

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I needs government help to live.
I must be a liberal.