Sunday, July 12, 2009

Sacramento Sorrow

Ok, here comes the Prime and Alt-A whiners. The bubble was obvious; if you participated you put yourself, your family, and your savings (assuming you used any for a purchase) at risk. Now we get a whole new breed of Shamers!

Ya' know, I remember a time when $500K was a LOT of money. But here's a guy that drank the kool-aid deeply. Go out and buy that $600K house on the golf course; live large; prices only go up; don't worry about the future. Well... it's time to give it all back.

Food for thought:
At the ripe old age of 55+, why would anyone want to take on crippling debt? As you approach your "golden" years you should be seeking security and zero debt.

2009-07-11: Mortgage defaults spread as even 'safe' borrowers falter
No longer is the real estate bust simply the result of exotic, subprime loans that doubled payments and blew up in homeowners' faces. As the Sacramento economy buckles, even the safest mortgages have become part of a new wave of loan defaults, experts say.

With capital-area job losses reaching 45,000 in the past year and unemployment at 11.1 percent, lenders, bankruptcy attorneys and debt counselors all say they're seeing rising delinquencies among prime borrowers with fixed-rate loans and good credit. Many of those slipping into trouble are state workers, the mainstay of Sacramento's economy.

There are 3.3 million of them in California – 56 percent of all mortgages. But nearly 4 percent were delinquent in the first quarter,

Already in the foreclosure process is Ron McClure of Roseville. He bought a $600,000 house at Sun City Roseville in 2003, using a prime, fixed-rate loan that cost him $3,200 a month.

That worked until the housing market collapsed. McClure, partner in a small home-building business, saw his income collapse with it. Six months ago, he stopped making payments on the house.

Here is the house:
7681 Rosestone Ln, Roseville, CA 95747
3 beds, 2.5 baths, 2,538 sq ft
Zestimate®: $455,000

Sold 08/15/2003: $600,000
2008 Property Tax: $6,757

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