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Discussion Starter · #1 · (Edited)
I was just reading today Aegis... a local Harford county paper.

The forecloser pages are getting thicker and thicker.

How is it someone that bought a house in 2005 has an interest rate on a $400,000 loan of 7.5%? Now I'm not talking 1 or 2 there must be 15 in todays paper... and one has a rate of over 14%??? WTF?

Did I sleep through 2005? Anyone know what interest rates were back then?
 

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See it all the time-people stretch the budget way too far.One little problem-fuel prices-etc. and they are S O L. 14% sounds like a real bad credit risk.Credit cards and interest only loans get alot of folks in a hole that they can't get out of. Md. tighten up the bankruptcy laws so people just can't walk away from debt anymore. Skip
 

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Here's the problem:

Avg home price is 280k+\-
Avg household income required to afford avg home, 80k+
Real avg household income = 55k

This creates a lot of high risk or creative loans. That equals alot of foreclosures.
 
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