Do homeowners deserve to be foreclosed on?

In the wake of competitive over-list-price bidding wars and waiting lists for vacant lot purchases to build a new home on, some homeowners have found their dream in real estate has faded. Do these homeowners deserve to be foreclosed on?

There is much attention being paid to homeowners whose rate lock has expired and is resetting at a higher interest rate than they can afford. Some programs have been implemented on a local level, through major mortgage lending facilities and through governmental programs to help homeowners refinance into a more affordable rate. Do these homeowners deserve to be foreclosed on?

Then there are the real estate buyers who financed more than 100% of the current real estate market value of their house. Some real estate buyers got into loan programs that were interest-only--all in an effort to own a piece of the American dream, because they didn't have a bigger downpayment or the creditworthiness to qualify for a conventional mortgage. Do these homeowners deserve to be foreclosed on?

Then you throw in life's ditches. Job loss, illness, rapid decrease in property value, overcashed assets (i.e., no equity left in the house) and you find a pot of boiling water that is waiting for some homeowners these days. Do these homeowners deserve to be foreclosed on?

With all of these factors, is it fair to throw stones at homeowners who are in an already-disturbing real estate situation? Do you subscribe to the logic that these homeowners are getting what they deserve and what they deserve is to be foreclosed on?

Navigating the discussion boards and blogosphere can be like stepping back into that old playground favorite, dodgeball. There are some who liken distressed homeowners to lazy, deadbeat dads. The sour taste in my mouth when I read these comments is like the exhaustive discussions that surround the inequities of the welfare system and how good the poor have it.

Not to throw a cog in the well-oiled think tanks that spit out the above well-intentioned thoughts, but here's my three cents:

Some homeowners overextended themselves and have now landed in a pickle, while others are living out life circumstances they didn't foresee. Either way, they are not thieves; nor, in most cases, are they deadbeats. They used available means to provide them with a desired result of homeownership.

• Are dreams always reached by what we call common sense?
• Do people upgrade from passenger cars into an SUV with double and triple the car payment and gas because they are trying to be thrifty or live within their means?
• Are entrepreneurs known for playing it safe?

Next time you go into a discussion, online or off, make sure the lens in your microscope is properly adjusted and then lend your three cents.

The real estate ride is far from over.

• “Our greatest glory is not in never falling but in rising every time we fall.” -Confucius
• “When you get to the end of your rope, tie a knot and hang on.” -Franklin D. Roosevelt
• “The greatest failure is the failure to try.” -William A. Ward

If you enjoyed this post, you may want to read:

• Understanding the basics of short sales
• A homestead declaration could save your house from creditors 
• Connect2Agent takes a look at foreclosures

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Posted by Rebecca D. Levinson

Comments

[property bulgaria]

Ah. Isn't there somewhere in the history of law where it's considered double jeopardy taxes when two states tax the same sale? Isn't that what's going to happen if New York taxes Amazon's non New York resident affiliates? Because I imagine that what is what's going to happen in many cases.

[Avoid Foreclosure]

This site may be useful to some of you guys and gals.
It has some practical information on how to avoid foreclosure.

http://www.howtoavoidforeclosure.org/

Good Luck