Streams

Where the Foreclosures Are

Friday, April 11, 2008

Dwayne Jones, director of lending at the Parodneck Foundation, a nonprofit that does foreclosure default and intervention counseling, and Eileen Markey, freelance journalist, talk about the neighborhoods that are hit the hardest by the subprime mortage crisis.

Guests:

Dwayne Jones and Eileen Markey
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Comments [17]

George Fernandez from Warwick, NY

As cold as John P's comment may seem he does hit at a key thing long lost in this country. We used to be a country of stingy people from whom it was hard to extract a nickel. Now people spend like crazy, and of course, the worst is conspicuous consumption.

These bad spending habits drive the price of everything up. Two basic and old ideas have to be remembered. Charge what the market will bear. Caveat Emptor.
Here's a third. Don't trust a realestate agent who is going to "help" you buy a house your starry eyes shouldn't even be considering. We all know that feeling. You have to resist and assume the near worst could happen.

Apr. 11 2008 12:41 PM
Jon P. from Hewitt, NJ

Bonnie,

There’s a very simple solution to your daughter’s $3000 a month rent, move… I make decent money and would love to live in NYC or one of the burros. But I don’t because I can’t afford it. If you can’t afford to live where you are, move. So you have a long commute. So what? Join the rest of us that can’t live in the ivory towers. It’s as simple as that.

Apr. 11 2008 11:09 AM
Gretchen Haynes from Northport, N.Y.

Dear Brian, I appreciate your airing the crisis in home mortgages. I have a different problem: my homeowners insurance will be cancelled by Allstate on May 31, 2008. So far I have been turned down by some and getting no answer from other insurers. My Allstate broker explained that the co. lost so much $ in Katrina/Rita that they are cutting risks "elsewhere." L.I. is now the elsewhere.
Reasons for my cancellation: too close to the water, clapboard house; policy after 5/31/1998. [mine is from 1999]
"The N.Y. insurance law prohibits insurers from engaging in redlining practices based on geographic locationof the risk or the producer." [letter from Allstste] How are the reasons given me NOT redlining?
I have written and called my county, state and federal legislators. No help so far. Would you consider a program exploring this issue? Thanks. Gretchen Haynes
146 Bayview Ave., Northport, LI., NY 631-757-4548

Apr. 11 2008 10:56 AM
Simon from Manhattan

Bonnie, they couldn't get a fixed mortgage because they probably couldn't qualify based on their income. that should have been a red flag already. The banks were pushed to provide mortgages to marginal borrowers. Now everyone is playing the victim and saying how could the bank possibly give them these loans. People somehow thought housing was the next big investment and now we are stuck with the result. Because of all this talk of intervention, people are going late on their payments on purpose to try to renegotiate. Its no wonder banks are now increasingly unwilling to give loans out to anyone.

Apr. 11 2008 10:55 AM
ks warren from briarcliff manor, ny

without agressive lenders, none of these sub-prime borrowers would have a chance to attempt to buy a house.
and as sad as being turned out into the street might be, how many of these immigrant, second generation immigrants, or black borrowers, would opt to have stayed in jamacia, or public housing?
they took a shot at owning something, and failed.
pity.
life moves on.
let's minimize the burden they put on the rest of us.

Apr. 11 2008 10:53 AM
Bonnie Rothman from Staten Island

Adjustable mortgages were pushed onto borrowers as a great deal that could be renegotiated. What part of that fact escapes those who rail against the borrowers alone? I have now heard more than one story of a borrower who couldn't get a mortgage that had a constant rate even when they applied to several banks! I have also now heard more than one story of a borrower who was not ignorant of the facts but did not realize how impossible renegotiation might be when they first got the mortgage. Finally, in NYC given the cost of rentals even an adjustable mortgage seems a reasonable choice. My daughter, in a dinky apartment, is paying close to $3000 a month and it is about to go up: adjustable rent, anyone?

Apr. 11 2008 10:50 AM
Mark Phillips from Brooklyn

This is a map that shows every foreclosure in New York City (you can zoom out and look at the whole country too).

http://hotpads.com/map/index.htm#lat=40.7594034090909&lon=-73.9777409090909&zoom=20&areaBorders=heatMapForclosuresPerCapita&listingTypes=foreclosure&pricingFrequency=once&loan=30,0.0642,0

Scroll over to Brooklyn and look at how Bedford Ave. is a line of demarcation. It's pretty interesting to see it mapped out like this.

Apr. 11 2008 10:47 AM
Nicole

The last caller, as unfortunate as her situation is, is in that situation entirely of her own mistakes and miscalculations. If you were to do away with No income loans, what would all those self-employed business owners do? People who actually make good livings, but perhaps work really hard to keep their W2 income low, make a lot of cash and although they don't qualify based on their income docs, are fully capable of and responsible about paying their debt.

Apr. 11 2008 10:46 AM
hjs from 11211

on the other hand good time to buy.

Apr. 11 2008 10:44 AM
George Fernandez from Warwick, NY

One culprit in these problems that people are experiencing that doesn't get any attention is the usury that banks are getting away with on Credit Card Finance Rates.

I also hope that none of the speculators, who have been the primary forces behind inflating the value of house beyond the means of two income families, will not get any assistance or bail out from the government. This must not happen.

Apr. 11 2008 10:44 AM
Simon from Manhattan

Unfortunately, it seems like the comments placed here will never make it on the air. I guess the sob stories make for better ratings. I guess we'll all have to pay for people's gambling mistakes with both increased taxes and a falling dollar.

Apr. 11 2008 10:43 AM
DP from Crooklyn

Many people "bet" on home prices continuing to rise and they lost. Many people fudged the numbers on their loan applications (at the behest of the loan officers) to get loans to "gamble" on the real estate market. If their gamble didn't pay off, that is too bad. Most people who were conservative in their purchasing and financing of a home are probably not in foreclosure unless they suffered from something else (job loss, etc).

Apr. 11 2008 10:40 AM
Joe Corrao from Brooklyn

My father worked 2-3 jobs to raise a family of 5 kids and pay a mortgage...we lived in the house he could afford...have time changed that much?

Apr. 11 2008 10:40 AM
DP from Crooklyn

As an attorney and as a person who worked in the mortgage industry generally, there are underhanded people in the mortgage industry and there are also substantial homeowners who used their home as a bank account and would refinance their home on a regular basis to refinance credit card (and other luxury item) debt. One particular issue which perplexed me was when I would try to explain the terms of the loan to the borrower and they would tyell me that they just wanted to sign the paperwork and not waste time with discussion. People who were willfully negligent should not be protected.

Apr. 11 2008 10:36 AM
Jon P. from Hewitt, NJ

As sad as your story may have, if you can’t afford to pay your mortgage why do you deserve to own a house? If I can’t afford to pay my car payment, do I still deserve to keep my car? Should tax payers pay for me to keep my car even though I can’t afford to own it in the first place? What’s the difference? Spending irresponsibly is just plain spending irresponsibly no matter what your buying.

Apr. 11 2008 10:36 AM
Joe Corrao from Brooklyn

Man this guy Adam that called had good points to make and you're doing a tagteam slam on him...let him talk please

Apr. 11 2008 10:34 AM
Simon from Manhattan

What part of adjustable did people not understand?! This is the largest purchase anyone makes in their lives. Did they not read the paperwork at all? Why should the tax payer pick up the tab for this? Why should banks make any agreements to reduce principle when all this would do is increase costs for all the people who actually pay on time? (Since gov't intervention would have to be priced into future loans). This whole thing is ridiculous and part of the political season. Unfortunately any bail out will cost us for years down the line and at a time when the gov't can really not afford to go down this path. On top of this, if housing prices go down it really benefits new buyers who currently cannot afford to purchase a home. why do we seek to artificially lift housing prices? Why do we want inflated housing prices and inflated property taxes along with them?

Apr. 11 2008 10:33 AM

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