Foreclosures Hurt Everyone Involved
For the many American families facing foreclosure these days, the stress and worry caused by impossible mortgage payments may seem like a personal, private matter. That is, it may seem like foreclosure, by ruining homeownership, can wreak havoc only on families. Unfortunately, the effects of the foreclosure crisis are more far-reaching.
Not long ago, Wade Timmerson considered himself a "real estate guru," according to an article by KDKA Pittsburgh news. He'd been in the real estate business since graduating college, and had been buying and selling houses for nearly 10 years when the housing bubble burst.
In that time, he reportedly completed more than 1,500 real estate transactions; bought, fixed up, and sold many houses; acted as landlord to renters; and even wrote a book of advice for those looking to enter-and succeed in-the real estate business.
When the housing market turned, though, many of Timmerson's renters were unable to make payments on their homes, sources report. As the missed payments became more frequent, Timmerson couldn't pay the mortgages on several properties, and before long he found himself declaring bankruptcy.
Properties he once bought and fixed up apparently became vacant, fell into disrepair, were burgled, or housed drug addicts and street-dwellers. Not such a good situation for the neighbors.
Perhaps the most interesting feature of Timmerson's story is how familiar it sounds. At 29, he was reportedly approved for a $1.2 million loan, with no money down. At that point, he'd been in the real estate business a mere two years. No wonder he allegedly considers the credit industry partially to blame for his tumble to bankruptcy.
Though he experienced house-buying from the opposite perspective from most families, Timmerson has apparently admitted that his naiveté about the real estate industry was a major factor in his ultimately risky ventures. Indeed, without an adequate understanding of the market's cycles, anyone can grow over-confident and make decisions that lead to disaster.
Whereas families facing foreclosure often have the temptation of ARMs to blame, Timmerson was lured into letting his business grow too quickly, so that he spread himself too thin, the article explains. His story, all too familiar to many Americans, is a sort of microcosm for the current situation across the country.
But maybe that's not such a bad thing. Sources indicate that Timmerson's business is now emerging from bankruptcy, and he's planning to cautiously rebuild it. Timmerson has reportedly said that he's learned from his mistakes, and is looking forward to following the "American way," the way of second chances.
Lately, the American way has also been the way of rising mortgage payments, readily-available credit, high interest rates, and bankruptcy and foreclosure worries. With an attitude like the Timmerson's, though-an eagerness to learn from mistakes and start over slowly-the "Americanness" of his situations may prove very valuable indeed.