Posted on 04/27/2012 11:31:07 AM PDT by AngelesCrestHighway
More than 1 million Americans who have taken out mortgages in the past two years now owe more on their loans than their homes are worth, and Federal Housing Administration loans that require only a tiny down payment are partly to blame. That figure, provided to Reuters by tracking firm CoreLogic, represents about one out of 10 home loans made during that period. It is a sobering indication the U.S. housing market remains deeply troubled, with home values still falling in many parts of the country, and raises the question of whether low-down payment loans backed by the FHA are putting another generation of buyers at risk.
(Excerpt) Read more at reuters.com ...
House prices are still insanely high for the market (or lack of). Could be that many of them are listed so high, because the borrowers have mortgaged them to the gills. There won’t be an upside, until all of them are foreclosed and resold cheap. Maybe not even then (see decades of us Baby Boomers croaking).
In Minnesota.
Yeah, but then property taxes will eat you alive.
Nuts! I am fortunate as mine is a fixed rate and I only have approximately 2 1/2 years until mine is paid off in November,2014.
It wasn't too long ago some people on these boards were saying that "now is the time to buy" and disregarded warnings about trying to catch a falling knife.
Aren’t there a lot of foreclosed houses being dumped on the market right now, since the “robo-signing” deal got settled? That’s got to drive the values down for everybody else.
Agreed, but there were many people here sounding like things could only go up from 2009 and were making blanket statements.
Things in Nevada, outside of Las Vegas as well, are still drifting downward in a stagnant market - even among the under $200,000 range. In my desert area, lots that were $15-20K shot up to $40K - and people bought in - are now at $8.5K are starting to sell - from people around the Salt Lake City area.
It’s very localized as others have pointed out. There are decent brick three bedroom, two bath ranchers with basement on an acre here for $115,000. Combine that with the low interest rates and people are starting to buy again. Unemployment is still historically high and wages are stagnant to declining overall, but for those properties that actually are in some way desirable and are priced within reach and within the historical guidelines of 2.5 to 3 times household income, they’re selling, finally. More “sold” signs than new “for sale” signs popping up around here.
They're STILL saying that around here. Reminds me of the guy who jumped off the Empire State building, and as he passed the 50th floor, was heard to say "So far, so good". :-)
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