September 7th, 2007 12:09 PM by Manuel Couto, CRS, CRB
BUT, not in NJ. Most foreclosures that you read about are happening in:
1. The subprime market
2. Adjustable rate mortgages
3. In the States of California, Florida, Neveda and Arizona
mmmmm, if you exclude those states, the national foreclosure rate actually declined in the quarter (article by P. Rucker, Reuters 9/6/2007). Delinquencies have gone up, though. What does that mean in the near or far future?... Well, as a president of a large bank once told me "Reach into your pocket and pull out a quarter. Take a long look at it, flip it in the air and there is your answer." The economy is still humming along, home depreciation seems to be taking place in areas where there was most investments, and a lot... I mean A LOT... of people have never lived through an economic cycle like we are having now. It's business as normal. How can you expect home prices to keep on increasing at 12-20%a year and still afford a home when income has only increased4-5%?
People have to remember that your home is NOT a piggy bank to take money out of and never put back in. I think that they forgot to save their money instead of asking loans against it. PROTECT you home at all costs. That's where you, your family, your memories all live. Where the good, the bad, and the happy times happen. It's not supposed to be a piggy bank, or an ATM machine.
Well, till next time.