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.

Let’s get back to the falling of home prices. A couple of years ago our family was looking to move out of a mobile home park for some conveniences not offered there. My husband wanted a garage so he can work on the vehicles and I wanted an area for gardening. Newly married and both of us previously divorced it was hard to find money to save. With the help of state housing program we were able to qualify for a low 30 year fixed under-6-percent-rate mortgage, also helped us with the down payment as well. As the primary home for sale searcher for the family I had come across so many listings and one caught my eye. A property in Maine with acreage but it only offered one bedroom, and heating was electric for under 200k. A big piece of land would be dreamy, but it wouldn’t suit the size of our family, so we opted for something more affordable in New Hampshire. That house in Maine was just recently listed for 250k. I remember the listing quite well, and was shock to see the price went up and not the other way as the media have been showing us. With the interest rate being low it is only logical that housing prices remain the same. These articles about foreclosures and whatnot seek buyers looking for a good deal. What a marvelous marketing way to keep the real estate business.

I’ve recently searched for houses in the local areas and noticed that the value of the houses have come down, it seemed, the hard to sell kinds. For under 150k you’ll find mobile homes in park and on its own land, handyman’s fixer upper, and land of postage stamp size. So that’s why we see foreclosures everywhere. People can’t afford to upgrade their houses and in turn the houses become a fixer upper for sale cheaper. Even with the national rate of 5.87 percent mortgage still is a great rate, but who’s buying.

Sources:

Dhhs.gov

Lunch Substitute employment for local school

http://buzz.yahoo.com/search?p=gas

Yahoo.com

Bankrate.comNneren.com

This entry was posted on Saturday, May 23rd, 2009 at 4:16 pm and is filed under Manufactured Housing. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.