Quote:
Originally Posted by KSigkid
But, I think Michigan is an exception rather than the rule. With the troubles in the auto industry, even people who spent within their budgets are facing foreclosure. I don't think you can use Michigan as a representative sample of the rest of the country.
I'm guessing there were still people in MI who over-extended themselves, but overall I think the state is an exception when examining the foreclosure problem.
|
Yes, there were still people who overextended themselves. She had specifically mentioned Michigan being up there with California and Florida and I was pointing out the difference. Our unemployment rate has hit 12% and that was before my health system started their layoffs (we are the 6th biggest employer in the state.. maybe higher since the auto companies have laid off so many now). But, yes, the "interest only loans" were pushed heavily here too. When I bought my house, they also approved me for about $50K more than I used. I knew they were crazy about the price they prequalified me for and joked that I could afford that only if I didn't eat. I think a lot of people trusted that if they prequalified for that amount, they could afford it and that's definitely crazy.
All that said, after getting a reasonably priced home with a realistic mortgage, if I had to move today, I'd have to walk away from my house because housing prices have dropped so drastically. I've even paid extra principal every year and I probably owe more than I could sell it for. Once you get too many people who are upside down like that, there are going to be more foreclosures. I'm not going anywhere for at least 5 years, but I sure hope in that 5 years I can sell it for more than I owe on it!