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Thursday, Dec. 18, 2014

Recession or...

Posted Wednesday, April 9, 2008, at 10:13 AM

For some time now signs of the current economic situation have been staring at us, but right now, at least in my humble opinion, things look pretty bleak.

I guess first I should mention that my understanding and grasp on economics is quite limited, but regardless I think it needs to be discussed.

Former Fed Chairman Alan Greenspan came out today and said that the country is in deed in a recession.

While to those of us here in the real world, it hasn't been a secret for some time, people of his stature are very leery of words like that and they don't use them unless things are indeed serious.

Someone very close to me, I won't name them because the situation might embarrass them, is fixing to join the crowd of several million others and lose his home.

He works in new home construction and five years ago during the housing boom was doing really well. Interest rates were low and there was more work than there were hours in the day.

He and his family purchased a 3 bedroom home at a remarkably low interest rate from one of these mortgage companies that began popping up around that time.

Over the past five years interest rates have risen, slowing the housing market and in turn slowing work for several industries.

As interest rates rose, his monthly mortgage payment has continued to increase while the amount of work and income has dropped dramatically.

A 30-percent mortgage increase combined with 40-percent less income is a recipe for total disaster.

After spending the last year selling off personal belongings and family treasures, he's finally reached the conclusion that he's reached the end.

He's decided that foreclosure is the only option. The past year been hard, not only on the pocketbook, but on the family, too. They've just decided it isn't worth it anymore.

I just wanted to share this story because I thought maybe some of you had a similar one. You just never know when it could be you.


Comments
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This is so sad! Does this mean that his house will be sold on the auction block at the county courthouse steps?

There have been at least three homes sold like that in the town where I live.

-- Posted by goat lady on Wed, Apr 9, 2008, at 3:43 PM
Corey Noles' response:
Well, he doesn't live near here, but yes that's exactly what it means. It's very scary to see just how much of that has happened. Low income, middle class, upper class, it's happened to people in all walks of life. Even wealthy people have seen their investments and retirement savings shot down.

Wow - there has to be some resource for him. Maybe that is wishful thinking, but you would think that help would be available for a hard-working, honest person.

-- Posted by my2kids on Wed, Apr 9, 2008, at 5:35 PM
Corey Noles' response:
Well, there are certain kinds of help, but he's already exhausted most of it. The creditor involved isn't helping out anymore because the situation has gone on too long. To be honest, I think he's reached the point where he just wants out and doesn't even want help anymore. These things can be very frustrating and difficult for families to cope with even causing marital problems.

I do not know who your friend is, or where he lives, but there is another option that will possibly keep a foreclosure off of his credit report. If he knows a good Realtor he can list his property and possibly go with a SHORT SALE. If he can list it, the Realtor will have to contact the lender (with the permission of your friend) and discuss the possiblity of a Short Sale, if the lender agrees and they can get someone interested in the property in a short time frame (decided by lender) they can close on the property and your friend will not have a foreclosure on his credit report. He will receive a 1099 for any monies forgiven if property is sold for less than owed on the property.

-- Posted by A1Realtor on Thu, Apr 10, 2008, at 1:09 PM

I heard a BBC story on the radio this morning that homeless camps are springing up in Los Angeles populated by formerly middle class people who have lost their homes. The BBC reporter interviewed some of the people, and most are still working at some sort of a job.

-- Posted by FJGuy on Fri, Apr 11, 2008, at 2:22 PM

I am in my second semester of college, at nearly 40 years old. I am majoring in pre nursing right now and plan to have my RN degree in a couple of years. It is a career choice that I think will be recession proof as well as rewarding. I feel so bad for these people who lose their job and everything they own.At least if you and your family are healthy, that is a true blessing to count. We all need to keep our faith strong and be kind to each other, we are all battling something.

-- Posted by mizzou_mom on Thu, May 1, 2008, at 10:30 AM


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Corey Noles, staff writer for The Daily Statesman and Editor of The North Stoddard Countian, is the author of a regular baseball/St. Louis Cardinals column and also uses his blog to sound off on various happenings in sports. He also operates a weekly baseball mailbag column.

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