Foreclosure Alley -Very Sad

**HappyMama** · 10-29-2008, 10:20 AM

This is very informative and sad. Having come from California , with many friends and family still there this made me so sad. I know this is hitting families and communities everywhere and I am praying for all. 700 families lose their homes daily and here is a excerpt of foreclosure alley in S . California. Thought I would share.

Seeing the trash outs with the family pictures still there made me want to cry. This was the most informative I have seen of the whole process.

http://www.kcet.org/socal/2008/09/foreclosure-alley.html

**forHISglory** · 01-14-2009, 10:19 PM

I thought I would BUMP this so more could see it.

**VanVivCam** · 01-15-2009, 08:45 AM

I am typing as I am watching the video

I'm not sure how I feel about this. These people KNEW they probably couldn't afford these homes. My hubby and I bought a home that we could afford. If something was to happen and we could only work for min wage, we would still be able to keep our home. Alot of these people mortgaged and then got LOC on these houses too. I can't feel sorry for ALL the foreclosures.

$3100 a month mortgage!!! That is just crazy!!! Our mortgage is $575 per month!

If the banks and others in charge didn't make such BAD loans, we wouldn't be in this trouble.

I want to live in a dream home too, but not if I can't afford it. Don't buy something you can't afford!!!

**forHISglory** · 01-15-2009, 09:07 AM

The foreclosures are a complex mess.

Much is caused by greed: greed of the lending institutions and greed of folks who want more than they can afford.

Much is caused by ignorance: ignorance of how economics works, ignorance of what is going on in the world, ignorance of predators waiting to snuff their money.

Much is caused by circumstance: people who have done everything correctly are caught by illness, accident, death, layoff, etc. Not all can be foreseen.

In general I agree that people needed to think and act smarter when taking out a mortgage and start very small. I see too many people wanting their starter home to be everything their parents had. Most of us aren't independently wealthy enough to do that safely.

The part of the video that intrigued me was how folks walked away from furniture, electronics, clothes, pictures....... OK. So they lost the house. But why are they not taking with them what belonged to them? I don't get it.

**3tomboys** · 01-15-2009, 09:14 AM

This is very sad. The one story where they stopped to have lunch, Lake Elsinore is where I grew up. We have several family members in Southern California and have seen this happen before and we were personally caught up in the last Real Estate decline there. My mom lives in a retirement area in So CA (luckily her home is paid for) she has seen several homes foreclosed on, one next door. It was really sad when her retired neighbors had to move because they could no longer afford the house payment (adjustable rate).

**The Muse** · 01-15-2009, 09:28 AM

I can't feel sorry for most of these people.

Illness, accidents, etc. are one thing, but basing your buying decision on 2 salaries, one of which might be lost at anytime, or simply over extending is just irresponsible.

I understand that real estate in CA is expensive, but so is real estate where I am, and I know people who have moved to a less expensive state so they could afford a house.

We bought less house than we could afford in case the unknown happened. DH has been laid off twice, and we're still in our house and on target to pay it off 10 years early.

Prepare for the unexpected and it's less likely to be catastrophic.

**frugalbabe** · 01-15-2009, 09:43 AM

Actually, who I feel really bad for are the remaining neighbors who are suddenly paying mortgages for homes that are free-falling in value and are watching the homes in their neighborhood suddenly going for a fraction of the price they paid for their own homes. That has to be hard to stomach as well.

**Jayne** · 01-15-2009, 09:44 AM

We need to remember that this could be any one of us and have some compassion for these people....I got sick to my stomach watching this...It is so sad..

**JerryG** · 01-15-2009, 09:59 AM

Originally Posted by Jayne

We need to remember that this could be any one of us and have some compassion for these people....I got sick to my stomach watching this...It is so sad..

Well said - thank you

**ladykemma2** · 01-15-2009, 10:04 AM

i dunno

i don't have much sympathy. i left california so i could afford to live.

**annymoll** · 01-15-2009, 10:11 AM

It has always been sad to see people lose their homes due to illness, but it is nothing new. I have no sympathy for those who over extended and were stupid.

**Milly** · 01-15-2009, 10:18 AM

Knowing what I know now, it would be easy for me to dismiss these unfortunate people as 'reaping what they've sown', but I think that overlooks the aggressive and deceptive practices of mortgage lenders.

In my case, I own two properties. One is completely paid off and the other has just a small amount left on it. DH and I live in one and DD and her family live in the other.

At the time we took on these debts (both within the last ten years, in case you were wondering), we took out the loans with a small, local, 4 star bank and had it written into the mortgage that they could not sell the loans.

From day one, we were deluged with 'come ons' from other mortgage lenders (AmeriQuest was particularly aggressive), promising the world if we would just refinance with them: lowered interest rates, home equity lines of credit, free trips, the whole nine yards.

Had I been young and naive instead of old and cynical, I probably would have fallen for one of them somewhere along the line.

So, I'm wondering about the demographics of this crisis. How many were young people who had little or no experience with the world and believed the pie-in-the sky promises of the lenders? On the other hand, how many were older people who were brought up in a time when you could actually TRUST lenders (yes, there was such a time) and believed it was still so?

Incidently, my 4 star bank has become a 5 star bank. They are so flush with money they can't find enough places to put it. Apparently, people are fleeing from the larger banks as they topple like dominos and regard my little bank, and many others like it, as a safe haven. So, if you're looking for a loan, a small local bank is the place to look.

**Pemberleyan** · 01-15-2009, 10:19 AM

It doesn't so much make me sad as astounded at the waste. Yes, on some level I feel sorry for anyone who has their home foreclosed, but buying too much home has never been wise. I could not get over the stuff going to the dump; computers, furniture, cookware, appliances, family photos, etc.

**Kaos Kitty** · 01-15-2009, 10:20 AM

Originally Posted by forHISglory

The part of the video that intrigued me was how folks walked away from furniture, electronics, clothes, pictures....... OK. So they lost the house. But why are they not taking with them what belonged to them? I don't get it.

Many people are in denial that it is really happening. Although they may have a few months to move out - they keep thinking something will change and they will be able to come up with the money or find a way to keep the house. Then suddenly they are down to 24hours to leave, and the idea of packing and moving is overwhelming. Maybe they feel if their stuff is still there that they will be able to come back, that they're not really leaving for good. But by that time people are in panic mode and not thinking clearly. It's only later that they realize they left all their family photos, and even passports and birth certificates. (I saw the clip originally when it was aired on Oprah).

What's really sad is that almost all the items are going to the landfill - because charities that promise to pick up the stuff can't be relied on. Thousands of dollars worth of stuff for every house, the majority of it brand new, trashed into the garbage. The previous owners don't benefit, not the bank or anyone else.

**mom23boyz** · 01-15-2009, 10:43 AM

Well I was personally affected by this. I lost my house 2 years ago here in California. We didn't buy a house with a huge payment. I live in a small desert community where the people from LA move to get cheaper housing. Not everyone has a lawyer with them when they buy a house or sign loan docs.We were doing great...ahead of the game until I got sick.I couldn't work. Everything just began to fall apart. The bills started piling up, the bills got later and later and then the mortgage adjusted. Of course we really could no longer do it and the house was lost. Yes we probably could have let the car go but then how did we get to work, school(our kids aren't bussed unless you live 8 miles from the school).BTW, I had/have no CC's. It hurts to have people who have no idea what its like say well its their "own fault" they lost their house.I worked for a large mortgage company that handled calls from people AFTER obtaining their loans and honestly people are lied to and even alot of loan officers don't know how the loans really work. I blame myself for the loan I got thinking well once it adjusts we can refi into a fixed since our credit will be even better. When I bought my house...my rent was higher than my mortgage. My rent now is almost as much as my mortgage.Just moving to a new state to buy a house for a lower payment isn't always an option. Sure I could pack up and move to Texas or somewhere lower than California but then I leave my Mom whio is very ill behind here in California. Its just not that easy.Sorry I have rambled on and on. I just think unless you've been there or know someones personal story...you really cann't judge.