Help!

Unless you are living in a hole, you are aware that there are a record number of foreclosures across the country. If you are living in a hole, it might be because you have been foreclosed upon. And if your head is stuck in a hole in the sand, you might very well end up in foreclosure.

The state of Ohio has the dubious distinction of being number one in the nation in foreclosures. There are many factors; stating that the housing bubble has burst is putting it much too simply. What caused the bubble to burst.

Banks, realtors, bankers, home buyers, home sellers, bankers, mortgage companies, government regulations, lack of government regulation. Oh, did I mention bankers and mortgage companies?

In other words, we all had a small part in it if you have been involved with buying or selling a home in the last 3 years.

Realtors:
Hindsight is 20/20. If someone walked into our offices and wanted to buy a house, we didn't care how or why the mortgage company lent them money, we just sold them a house. I have been guilty of this and have even gone so far as to tell young couples that money was so easy to come by that their dog could get a loan. Half in jest, full in earnest.

Banks, bankers, mortgage companies:
Come on guys! Did you really think that someone making $40,000 a year could afford a $300,000 house?! During the last 3 years, banks seldom looked at ratios (your income in relation to your debts). All they wanted to see was your credit score also knows as your FICA. [Credit scores are based on your ability to pay back money, ie make monthly payments on time. So theoretically, if you owed a million dollars, the bank didn't care as long as you made your payments on time.]

Also, the banking industry came up with all kinds of "creative financing" designed to get you into just about any house your little heart desired. Interest only, balloon, adjustable rate, no payment for an extended amount of time (then they hit you big). More on all of these terms later......

Buyers and sellers:
Okay, so its natural for everyone to want a place to call their own. It is also natural that if someone is willing to give you money, you will take it. So if a buyer can give a seller money, the seller will stand there with their hand open. And the more money to spend, the more was charged. (Do NOT confuse this with inflation.) This phenomenon caused a little condition known as "getting upside down." Sound uncomfortable? It is, especially if it involves your pants pockets being open whilst you are being hoisted into the air by your ankles. More on this condition later.......

Bank regulators vs de-regulators:
Think about the Savings and Loans scandals of 20 years ago and make up your own mind. If you are less than 2o years old, ask a grown up.

So, if the foreclosure dragon is breathing down your neck, HELP! is on the way.........