Government reports FORECLOSURES are down for the seventh straight month. Well that makes sense. After all the foreclosures began, what, 3 years ago at extremely high rates. The wealthy bought these foreclosures for pennies on the dollar. Three years of foreclosures, eventually the supply of houses to foreclose on has to drop.
After 3 years of foreclosures we are probably getting down the the last of the people who still have jobs, and are able to make their payments.
Let me point out that not all foreclosures were due to the actual mortgage payment. Many were due to our government greed. Like my house the government raised my taxable property value to twice the actual market value. Which meant I was paying 12.85 times more than my neighbors. I was told the reason my taxes were so much higher is because my house is brick. Not a brick facade, but 3 brick thick. This raised my mortgage payments by over $250.00 a month. Now my Income did not match that kind of increase. Eventually my attorneys, advised me to spend the money for an independent appraisal. This showed the true market value. I took it to the clerks office for an appeal. I won and they finally lowered my tax value to my market value. I was still paying more than my neighbors. Then a year ago,, they finally reached the levels my neighbors were paying.
But now with property values falling all around. (In fact our county government raised our tax rate because the property values had fallen so much. But my house remained the same as 3 years ago when they agreed to the independent appraisal value. So my property tax is on the rise. (good thing I always pay extra to my escrow account),
But back to the foreclosures, the report said that ONLY 69,532 houses were foreclosed last month. Isn’t that still quite a few houses.
Fewer houses to foreclose equals fewer foreclosures.
Now that the wealthy have the foreclosed houses, they are more people are renting. According to the recent report I read RENTS, are rising more than the cost of owning a house which is finally falling. We’ll just have to see where this trend takes us.
Sorry if this was hard to follow.
That Is How I See It.