The Real Deal of Foreclosures and Cheap Home Prices

Yahoo's home page recent article Foreclosure Rate Jump 112 percent maybe good news for homebuyers, and that maybe true because of today's economy and possible depression underway. With many articles featuring soaring gas prices nationwide, the media is trying to convince us to be more conservative: shop wisely, more money towards grocery, less on gas. But that might be harder for some to do, and why is that?

Not everybody was born into wealth or inherited a big fortune or has the attitude of a top level management that can bring in six figure income annually, which still isn't enough somehow for them. Most of us had to struggle from day one, so how can this group of people deal with situations like these in today's everything-is-in-inflation crisis. Not even the Department of Health and Human Services can help. A family is either over income to qualify or not make enough to buy kids hot lunches, so the kids had to endure 5 day straight of peanut butter sandwiches, a free meal at school.

Here's an example. DHHS will assist only for a family of 3, if the household income does not exceed $1700 gross a month, with nothing taken out for deductions. If the mortgage is $1649 a month, yet the household only gross $2700 a month that will over qualify the family for any assistance. But really it is only wise to put some money into a retirement account, so $780 a month goes away as deductions for health insurance, taxes, you're only looking at $1920 net in actuality. But the net income is not calculated. The family could sell the house, and that will just add to the foreclosure rate. And what if the family of 3 fluctuates to 6 every other weekend? You may suggest sell and move. Rent isn't cheap if you're thinking that, especially for a 3-bedroom apartment. It can be more than a mortgage.