Posted on 05/08/2011 10:12:53 PM PDT by george76
If you thought the housing crisis was bad, think again.
It’s worse.
New data just out from Zillow, the real-estate information company, show house prices are falling at their fastest rate since the Lehman collapse.
Average home prices are down 8% from a year ago, 3% over the quarter, and are falling at about 1% every month, according to Zillow.
And the percentage of homeowners in negative-equity positions — with a home worth less than its mortgage — has rocketed to 28%, a new crisis high.
(Excerpt) Read more at marketwatch.com ...
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Default! Don't be so vulgar. It is called "Deleveraging".
I lost over 200 Grand on my house. Sad thing is that I never even saw the 200 grand that I lost. It came easy and it went just as fast.
Up here, as values go down, the mill rate goes up to keep the revenues flowing. And as for real estate on this part of the Range, it’s a piranha feeding frenzy of bizarre legal attacks against ranchers, schemes for more regulations, etc. Some group entities are trying to get it all for nothing.
The debt regime will correct itself with eventual default, IMO. All who can hang on until then will have a chance for small government without all of the weirdness of the past three or so decades. ...no revenues for it, and no manufacturing for sustainable revenues to keep it going.
Only when the ‘To Big to Fail’ do it. When a regular ‘Joe’ does it, its being a ‘Dead Beat’ there will be asomeone along in a bit to explain about the difference. ;-)
I have a friend who is contemplating a short sale. How much will this affect his credit?
I’ve been trying to do some residential real estate here in Las Vegas, this explains why my buyers don’t stick. Commercial is dead too. Thank god I’ve got my pole dancer job to fall back on.
You got it right in your post. The little guys are not dead beats. They just wised up and started playing the same game as the banks. The middle class has walked. That puts the whole system in collapse.
As for house prices, in our area prices have taken a fall but how much lower can they go? What’s lower, free? They are at prices that are lower than before the big run-up of the boom.
Yet they’re raising the property tax assessments where I live. Thanks for nothing.
It will be two to three years before he can buy a house again. That's the short direct answer.
But there is a bigger question he should be asking: Why is he concerned about his credit score?
Your friend should vow never to borrow money again, pay cash. Tell him to add up how much interest he pays a month. Just interest. Then have him look at what his lifestyle will be if he had that extra money.
Putting that money (the amount he was paying towards interest) to best use will be his new problem, not a mortgage he can't pay or is now making on a house that will not recover what he owes for at least five years.
Tell him to do the math. It does not add up to do anything but short sale. The credit score gets him nothing but debt and should not even be a consideration. He should read up on short sale and hammer the bank hard.
****The middle class has walked. That puts the whole system in collapse.****
Ripe for more Lobbyist-Care action.
I did not understand that reply. Sorry. Can you explain please.
Tell me about it.
Really. Our town council in No. VA raised the mills a couple of years ago a year after we bought our house saying”..but your total tax will go down.” However, here around DC, house prices have started to recover. Guess what! Our house just got revalued to a level that increased the property tax to more than the tax when we bought at the peak of prices even though it’s below our purchase price. Go figure.
You know, since the price of basic necessities like food and gasoline are rising at a rapid pace... there is less money the average American has to spend on things like housing. They can substitute renting for buying
But they can’t substitute food or gasoline.
The faster inflation bites those basics, the worse the housing market will get. For the market price for buying a house will have to drop down to the level to which the stressed family can finally afford.
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