How Bad Mortgages Are Affecting Long Island

I just love when Associated Content calls for content. This week the call is in for mortgages, and how bad mortgages and foreclosures are affecting my area. Well I'm writing this only because foreclosures and mortgages gone wrong have affected my area.

As sad as it sounds, I am benefiting from the amount of foreclosures in my area, and other people are benefiting in other ways due to this problem.

The problem is not really BAD MORTGAGES...the root of the problem is actually bad decisions on the buyers part. You see you sort of know when you come across a crooked mortgage broker, yet you go with the flow anyway...don't you? Besides you want the house. Can't say I blame these homeowners who now risk foreclosure. But really the bad decision was not the mortgage company, it was the buyer willing to accept the terms. So really we have no one to kick, but ourselves when it comes to foreclosing.

You see a few years ago prices of homes were high; extremely high, and some ill informed folks bought up anyway. However they bought homes with only $5,000 down, and closing costs incorporated within their mortgages, and no other means of money in the bank. Basically they bought on a whim with no nest egg stored away for emergencies; they bought when the prices were high, and now they suffer trying to pay $3,000 a month.

You see 5 years ago a person would buy a home for $350,000, however the home now is only worth $280,000 if they are lucky. Now when they go to sell these homes because they can no longer afford their mortgages, they realize they are making no profit, and refuse to sell...eventually though, the bank takes over and their home becomes bank owned. The reality is that those who refuse to sell for a lower price than what they paid will eventually get tossed. If you can't afford the mortgage, than sell before your foreclose.

Those who risk foreclosure will try and sell their home fast for a low price, so at least they end up with something, instead of foreclosing. Sadly though if the price is not dead low, they foreclose anyway.

How am I benefiting?