Home foreclosures skyrocket in Kelowna
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- Grand Pooh-bah
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Re: Home foreclosures skyrocket in Kelowna
heymac wrote:Glacier wrote:To reiterate a point mentioned on Castanet a dozen times already... unlike the USA, you cannot just walk away from your home in Canada. The bank will come after your for the difference if they don't recoup what you owe on the resale.
You can in Alberta I believe.
For the rest of Canada if you file for bankruptcy the banks loose if it's not CMHC protected or if they can't recoup the difference. Seen it done a number of times although it takes a while to get your life back on track.
If you're not CMHC insured, then yes - once the Order Absolute is granted by the judge, the deal is done. However, the vast majority of mortgages held in Canada over the past four years (over 70% is the number I've been told) are CMHC-insured. When the interest rates rise from the pittance that they are now, those people will feel the pinch the most.
I'd like to change your mind, but I don't have a fresh diaper.
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- Grand Pooh-bah
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Re: Home foreclosures skyrocket in Kelowna
Jonrox wrote:You guys are really trying to scare a lot of people who might be underwater with their mortgage. But you're all dead wrong.
When it comes time to renew, there's no "rebalancing" or putting an additional down payment down that will happen. The bank simply sends you some papers in the mail when it's time to renew and you sign them and send them back. As long as you make your payments, the banks are more than happy to take your money. It's a lot easier for them to do this than try to liquidate your house.
The bank doesn't want your house, they want your money. It's not until you stop giving them your money that they want your house.
You must have missed the 1980's entirely, eh?
If your home has only shed five or ten percent, the bank won't care much. When your home loses 20% or more in it's value, the bank will want you to make a lump-sum payment, or pay a much higher rate because you're now an at-risk mortgagee (assuming you owe that much more than the home value).
If you've paid down your mortgage, you're fine. If you haven't re-mortgaged and blown that money on boats and hummers, you'll be fine. If you've been diligent and saved money, you'll probably be fine.
I'd like to change your mind, but I don't have a fresh diaper.
- Captain Awesome
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Re: Home foreclosures skyrocket in Kelowna
36Drew wrote:If you've paid down your mortgage, you're fine. If you haven't re-mortgaged and blown that money on boats and hummers, you'll be fine. If you've been diligent and saved money, you'll probably be fine.
So, we just worry about dumbasses who took the money out of HELOC and bought hummers? Well, that's far from majority of people, really...
Sarcasm is like a good game of chess. Most people don't know how to play chess.
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- Grand Pooh-bah
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Re: Home foreclosures skyrocket in Kelowna
Captain Awesome wrote:36Drew wrote:If you've paid down your mortgage, you're fine. If you haven't re-mortgaged and blown that money on boats and hummers, you'll be fine. If you've been diligent and saved money, you'll probably be fine.
So, we just worry about dumbasses who took the money out of HELOC and bought hummers? Well, that's far from majority of people, really...
Or people that took a 0-down 35/40-year mortgage and were just barely eligible... They'll have what - 5K of "equity" in their house?
I'd like to change your mind, but I don't have a fresh diaper.
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- Übergod
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Re: Home foreclosures skyrocket in Kelowna
Jonrox wrote:You guys are really trying to scare a lot of people who might be underwater with their mortgage. But you're all dead wrong.
When it comes time to renew, there's no "rebalancing" or putting an additional down payment down that will happen.
you DON'T HAVE TO put more money down. There is always the choice of paying higher interest rate instead
Re: Home foreclosures skyrocket in Kelowna
36Drew, we're not even close to being in the same situation as in the 80's. Suggesting that we are is nothing more than fearmongering.
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- Übergod
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Re: Home foreclosures skyrocket in Kelowna
i wish there was a way to short the market. How does one go about it? Are there any Credit Default Swaps for Canadian markets?
- Captain Awesome
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Re: Home foreclosures skyrocket in Kelowna
36Drew wrote:Or people that took a 0-down 35/40-year mortgage and were just barely eligible... They'll have what - 5K of "equity" in their house?
Sure, there are always them. But vast majority of people have sizable equity in their homes. Majority of people pay more than just suggested minimum payments and throw money towards principle.
Sarcasm is like a good game of chess. Most people don't know how to play chess.
- oneh2obabe
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Re: Home foreclosures skyrocket in Kelowna
Captain Awesome wrote:Majority of people pay more than just suggested minimum payments and throw money towards principle.
Fastest way to have your house paid for in 5 years. Mortgage holder doesn't like it but that's their problem.
Dance as if no one's watching, sing as if no one's listening, and live everyday as if it were your last.
Life is not about waiting for the storm to pass. It's about learning to dance in the rain.
Life is not about waiting for the storm to pass. It's about learning to dance in the rain.
Re: Home foreclosures skyrocket in Kelowna
rekabis wrote:No rich renters?
Try Facebook’s Mark Zuckerberg. The guy is worth BILLIONS now, yet still rents. Pretty savvy guy, if you ask me. He’s no idiot, and still rents.
Zuckerberg bought a $7 million estate in Palo Alto last year... here's the link:
http://www.huffingtonpost.com/2011/05/05/mark-zuckerberg-house_n_858164.html
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- Grand Pooh-bah
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Re: Home foreclosures skyrocket in Kelowna
goalie wrote:Jonrox wrote:You guys are really trying to scare a lot of people who might be underwater with their mortgage. But you're all dead wrong.
When it comes time to renew, there's no "rebalancing" or putting an additional down payment down that will happen.
you DON'T HAVE TO put more money down. There is always the choice of paying higher interest rate instead
...and some people (most from the past 4 years) wouldn't be able to afford the higher interest rate. If your rate doubled, could you afford it?
I'd like to change your mind, but I don't have a fresh diaper.
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- Guru
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Re: Home foreclosures skyrocket in Kelowna
Glacier wrote:Which stocks pay out an average of a 7% dividend?
Sunlife Financial and ENERPLUS.
You have to watch insurance companies. Comparing Sunlife to other blue-chip stocks, the yield is much higher. The reason being is because insurance companies rely on interest rate spreads, which are nonexistant at the moment. Sunlife's yield, when compared to competitors, is warning of a dividend cut.
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- Grand Pooh-bah
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Re: Home foreclosures skyrocket in Kelowna
Jonrox wrote:36Drew, we're not even close to being in the same situation as in the 80's. Suggesting that we are is nothing more than fearmongering.
Different situation may have spurred it - but real-estate was severely impacted. The specific outcome relating to how banks deal with underwater mortgages still holds true.
I'd like to change your mind, but I don't have a fresh diaper.
- grammafreddy
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Re: Home foreclosures skyrocket in Kelowna
36Drew wrote:
...and some people (most from the past 4 years) wouldn't be able to afford the higher interest rate. If your rate doubled, could you afford it?
I agree with you. There's quite a few people (a lot of young families but not exclusively) who jumped on the 0/40 bandwagon at or near the top of the local boom. So far, they have been lucky and mortgage rates have stayed low. But when the banks can't keep that up, interest rates will climb. Those people will be in a world of hurt. The initial "honeymoon" was a 5 year term, so if they panic-bought in 2007 (the height) for $500,000+, that makes 2012 the end of the honeymoon.
I am not surprised to see more foreclosures now.
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We are a generation of idiots - smart phones and dumb people.
You cannot multiply wealth by dividing it.
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Re: Home foreclosures skyrocket in Kelowna
Here are some numbers relating to Kelowna foreclosures
Central OK 168 active forclosure listings
Of those 168, 50 are in two condos buildings that are under receivership, and 10 are located at Big White.
Out of the remaining 108, 28 are condos and 78 are single family dwellings.
For what its worth 5 of the 78 sfd's are listed for million+ and another 5 are listed for 2 million+
Central OK 168 active forclosure listings
Of those 168, 50 are in two condos buildings that are under receivership, and 10 are located at Big White.
Out of the remaining 108, 28 are condos and 78 are single family dwellings.
For what its worth 5 of the 78 sfd's are listed for million+ and another 5 are listed for 2 million+