PSBJ Foreclosure Atricle

[lannypoffo]

Interesting article in the Puget Sound Business Journal today about Foreclosures:



The article ends with the anecdotal story of a couple driven to bankruptcy by purchasing a home they could not afford desiring to purchase again... even though they have successfully found a bigger and better rental at less than half the cost of their previous mortgage. I do have to ask "from whence does this mentality come?"

Also some interesting stats about the carrying costs of a REO house, and how much increase there has been in REO properties in 2008 vs earlier years.

Worth a quick read.

Lanny

[The Tim]

[deejayoh]

well, they are probably paying $300/month in taxes

maybe have carried back a second for the downpayment at 10-11%?

[The Tim]

[deejayoh]

Wow. I suspect the writer never check the number they were given for reasonableness.

More quality "investigative journalism" I guess. Can't go without that.

[lannypoffo]

[WestSideBilly]

P&I on a 0 down loan at 7% would be about $1700/month. Even with taxes, PMI, and a really bad interest rate... no way.

Interesting trail of public records... looks like a few refinances.

[The Tim]

[jillayne]

Is this the same couple that discharged a second bankruptcy before buying? If so then that would mean higher interest rates but I think Tim found the problem: serial refinancing and extracting more and more equity until there's none left.