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11.3 million homeowners underwater on mortgage
MarketWatch ^ | Feb. 23, 2010 | Rex Nutting,

Posted on 02/24/2010 2:58:14 PM PST by george76

More than 11.3 million homeowners -- nearly one-fourth of all Americans with a mortgage -- owe more on their loan than their home is now worth...

More than 10% of people with mortgages owe 25% more than their home is worth.

The number of underwater mortgages increased by about 620,000 from the third quarter... Another 2.3 million mortgages had less than 5% equity in their home, which could be wiped out if home prices fall further.

Underwater mortgages are concentrated in few states: California, Florida, Nevada, Arizona, Michigan and Georgia. In Nevada, 70% of mortgages were underwater. In California, more than a third of mortgages were underwater.

(Excerpt) Read more at marketwatch.com ...


TOPICS: Crime/Corruption; Extended News; News/Current Events; US: Arizona; US: California; US: Florida; US: Georgia; US: Michigan; US: Nevada
KEYWORDS: housingmarket; mortgages; obama; obamanomics; underwater; unexpected
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To: Neidermeyer

“but I’ll control it for years and years and rent it by the week/month to vacationers...”

Sounds good in theory but there are dozens and dozens of empty vacation houses along the beaches. In some places 30% of the homes are empty.


51 posted on 02/24/2010 4:46:42 PM PST by driftdiver (I could eat it raw, but why do that when I have a fire.)
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To: Neidermeyer

Big talk from the man whose freedom I’m providing. Maybe you ought to give it up before you criticize.

Oh, wait, without that freedom I’m providing... you WOULDN’T BE ABLE TO.

So, go ahead, save your money.


I’m thinking you wouldn’t recognize this quote, based off your reaction:

“Those who would give up Essential Liberty to purchase a little Temporary Safety, deserve neither Liberty nor Safety.”


52 posted on 02/24/2010 4:53:36 PM PST by gogogodzilla (Live free or die!)
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To: LearsFool
Which would only be a problem if they had a reason to sell soon... otherwise, it makes ZERO difference.

Normally that would be true, but in this economy, whether you put down 1% or 20%, once you lose your job, you are immediately "underwater". Those who bought only as a home to live in, overpriced or not, and are in this position have my deepest sympathy. Sadly, the situation is not going to improve. I said it before, but it is wort repeating, the 1930s are going to be looked upon as the Golden Years.

53 posted on 02/24/2010 4:55:01 PM PST by Oatka ("A society of sheep must in time beget a government of wolves." –Bertrand de Jouvenel)
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To: driftdiver

No, I don’t think we’re happy at others’ misfortune. But some of us are indeed happy at our good fortune - at least I am. If you have a problem with that, I can’t help you.

And what would you like me to do instead? Decline the opportunity to buy a home now that it’s finally within my reach? It’s those of us who postponed buying in an overpriced market who are and will be propping up the market when it drops to reality.

If you, for instance, bought an overpriced home and now need to dump it, I’m the guy who’s willing to buy it from you. Without buyers like me, the price would drop even further. So take your lumps, learn a hard lesson, and be glad somebody like me lived for years on beans&rice in a rented shack. Otherwise you’d be even worse off.


54 posted on 02/24/2010 4:57:09 PM PST by LearsFool ("Thou shouldst not have been old, till thou hadst been wise.")
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To: LearsFool

“No, I don’t think we’re happy at others’ misfortune. But some of us are indeed happy at our good fortune”

Sorry, I musta been confused by your rants about their whining stupidity and missed your happiness at your own good fortune.


55 posted on 02/24/2010 4:59:55 PM PST by driftdiver (I could eat it raw, but why do that when I have a fire.)
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To: Oatka
Normally that would be true, but in this economy, whether you put down 1% or 20%, once you lose your job, you are immediately "underwater".

Well of course, but now you're bringing in another factor altogether - one which causes difficulties for people in good housing markets as well as bad. We can bring in other such factors if you like, but they would likewise have no bearing on whether someone is willing to buy your home for what you paid for it.
56 posted on 02/24/2010 5:02:27 PM PST by LearsFool ("Thou shouldst not have been old, till thou hadst been wise.")
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To: driftdiver

No, your confusion is in thinking I ever ranted about their whining stupidity.


57 posted on 02/24/2010 5:04:42 PM PST by LearsFool ("Thou shouldst not have been old, till thou hadst been wise.")
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To: trumandogz

Me too. I was in Texas as well at the time and took a major hit. Hung in there, continued to pay the mortgage and live in the home and sold it twenty years later and still took a 5K loss. Everyone I knew was in the same boat.


58 posted on 02/24/2010 5:04:48 PM PST by bergmeid (Gas up the truck and pedal to the metal!)
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To: Neidermeyer

Neidermeyer, thanks for your patriotism.


59 posted on 02/24/2010 5:05:56 PM PST by Arkansas Tider (Army EOD)
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To: driftdiver
Well I'm in a weird situation right now. Back in the late 1980s when yuppies were all the rage, I bought my first house. It was a three-bedroom ranch that was literally falling apart. The front lawn was overgrown, the clapboard siding was rotting away, the roof needed repairing, the chimney was falling to pieces and inside the house it was even worse. Drafty windows, no insulation, ugly paneling on the walls (or old lady wallpaper), linoleum floors, urine stains all over the bathroom, and on and on.

Oh how my peers laughed and laughed at me as they bought their fancy condos and lofts and drove around in their fancy luxury cars with Steve Winwood and Bruce Hornsby playing on the stereos. They had their health club memberships and their Caribbean vacations with the umbrella drinks and the young native girls who couldn't say no.

Meanwhile, I'm scraping old-lady wallpaper off the kitchen wall and vacuuming cat turds out of every crevice and dealing with a basement prone to flooding everytime it rains more than an inch. But at least I had no problem making my mortgage payments (which were less than what I had been paying for rent) and my Ford Festiva was paid off and I got to take the kids to Chuck-E Cheese every once in a while.

Oh well, they laughed at me then. But many of them aren't laughing so hard now. Especially since I paid off that house, got another fixer-upper, sold that house at a tidy profit and now live almost mortgage free in a half million dollar house. It's also nice that I don't have to eat at the Chuck-E Cheese anymore.

60 posted on 02/24/2010 5:22:24 PM PST by SamAdams76 (I am 21 days away from outliving Jim Jones)
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To: george76

Fruits of outsourcing.


61 posted on 02/24/2010 5:25:07 PM PST by mysterio
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To: SamAdams76

Hard work is a good thing but you took advantage of the over inflated prices just like those people did. Only they got stuck holding the bill and you had better timing.


62 posted on 02/24/2010 5:26:10 PM PST by driftdiver (I could eat it raw, but why do that when I have a fire.)
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To: SamAdams76
Oh how my peers laughed and laughed at me

you mean people actually laughed at you? how awful to be surrounded by such people...

63 posted on 02/24/2010 5:33:51 PM PST by latina4dubya ( self-proclaimed tequila snob)
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To: latina4dubya

I’m over it now. I can afford Patron now.


64 posted on 02/24/2010 5:36:21 PM PST by SamAdams76 (I am 21 days away from outliving Jim Jones)
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To: Gay State Conservative
Well,one thing’s for certain...the days of the 0% down mortgage are over.

Really? Cause these guys are still advertising zero down and 4% financing.....

Autumn Hall Wilmington NC
65 posted on 02/24/2010 5:38:09 PM PST by Kozak (USA 7/4/1776 to 1/20/2009 Reqiescat in Pace)
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To: MikeWUSAF

Others can eat noodles too.


Have you seen the price of noodles lately? Aaarrggg!!!!


66 posted on 02/24/2010 5:51:34 PM PST by Joan Kerrey (The bigger the government = The smaller the people)
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To: SamAdams76
I’m over it now. I can afford Patron now.

oh--my favorite... Patron Silver... smooth... Patron also has a Platinum...

67 posted on 02/24/2010 6:08:17 PM PST by latina4dubya ( self-proclaimed tequila snob)
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To: tiger63

I guess i can see your point...but look at it this way...other peoples kids will be paying your social security benefits.


68 posted on 02/24/2010 6:21:34 PM PST by annelizly
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To: driftdiver

What’s so hard about reading the dang paperwork, and asking questions to uninterested 3rd parties about anything they didn’t understand?

And if the answers raised too many questions... then trying to get a different loan that didn’t have the problems the 1st one did?


69 posted on 02/24/2010 7:07:23 PM PST by gogogodzilla (Live free or die!)
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To: gogogodzilla

Whats so hard about understanding the world isn’t black and white. That unethical people take advantage of other people.

Whats so hard about understanding that we are in the middle of a major economic crisis and many people have no control over their situation.


70 posted on 02/24/2010 7:09:18 PM PST by driftdiver (I could eat it raw, but why do that when I have a fire.)
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To: Arkansas Tider

Neidermeyer isn’t the one serving... but the one b@#*&ing about having to pay for someone who is.


71 posted on 02/24/2010 7:10:32 PM PST by gogogodzilla (Live free or die!)
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To: driftdiver

Not hard at all, I have to advise my troops about what to do with their homes when they’ve got to PCS. Which, personally, I think was incredibly foolish of them to buy, knowing that military member move at the drop of a hat.

I usually tell them to rent out their homes and use the rent money to pay off their mortgage... while living in an apartment at their next duty station.


But for the majority of Americans, that doesn’t apply. They buy homes with the intent to live in them for as long as they possibly can. And if you’ve lost your job, almost all states have laws on the books preventing you from being evicted from your home if you fail to make payment. So I really don’t see what the gripe is all about. It’s not like people are going to turf you out of your home.

Plus, if you’ve got to move to take a new job somewhere else, the rent out your original home instead of selling it... and use the rent monies to pay down your mortgage. If it’s not enough, well, it’s better than nothing... and if you keep at it long enough, you’ll end up with a paid for home that, in time, will still be worth more than you paid for it.


72 posted on 02/24/2010 7:18:40 PM PST by gogogodzilla (Live free or die!)
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To: gogogodzilla

“And if you’ve lost your job, almost all states have laws on the books preventing you from being evicted from your home if you fail to make payment. “

huh? baloney, make your payments or they will start foreclosure proceedings.


73 posted on 02/24/2010 7:21:02 PM PST by driftdiver (I could eat it raw, but why do that when I have a fire.)
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To: gogogodzilla

“Plus, if you’ve got to move to take a new job somewhere else, the rent out your original home instead of selling it... and use the rent monies to pay down your mortgage”

yeah that good ole renting. I rented one of my houses out and they destroyed it.


74 posted on 02/24/2010 7:21:40 PM PST by driftdiver (I could eat it raw, but why do that when I have a fire.)
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To: driftdiver

I take it you didn’t have a rental agency screening potential renters?


75 posted on 02/24/2010 7:26:38 PM PST by gogogodzilla (Live free or die!)
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To: gogogodzilla

Oh I had a very good property manager who checked all references and credit and criminal background.

Some people know how to work the system and make a habit of it. I actually got off lucky, they took their TV, table, and bed with them. That allowed my lawyer to declare they had abandoned the property.

Dog and cat feces/urine throughout the house. Five truckloads of garbage including piles of cigarette butts on the carpet.

Renting is very risky in this market especially when you are not local.


76 posted on 02/24/2010 7:30:42 PM PST by driftdiver (I could eat it raw, but why do that when I have a fire.)
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To: driftdiver

The foreclosure process.

http://www.foreclosurefish.com/blog/index.php?id=317

It’s not as quick or easy as you might think... and there are a ways to reset the entire process.


77 posted on 02/24/2010 7:32:24 PM PST by gogogodzilla (Live free or die!)
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To: gogogodzilla

Depends on the banks and the situation. The process is filled with lawyers taking advantage of people, banks not responding, and desperate people.


78 posted on 02/24/2010 7:38:27 PM PST by driftdiver (I could eat it raw, but why do that when I have a fire.)
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To: george76

bump


79 posted on 02/24/2010 8:05:23 PM PST by VOA
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To: george76

If you have zero equity, how can you be a “homeowner”?


80 posted on 02/24/2010 9:34:17 PM PST by Lorianne
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To: gogogodzilla

all forclosure and bankruptcy law is premised on the notion that primary residence property will remain steady and hold or improve value. The pre-2005 bankruptcy reform even envisioned the only way to have 100%+ lien on a home is via fraud or churning of financing.

The banks were pushing the future increase in home prices and essentially telling buyers that the price will not go down but will go up. You HAD to use one of the bank’s appraisers (ie Bank of America had a list appraisers you HAD to use or you would not get the loan)

in most situations it was CHEEPER TO BUY than it was to rent.

There were no angels.

HOwever it has to be noted that the bank got exactly the security they sought and gave.


81 posted on 02/25/2010 11:34:56 AM PST by longtermmemmory (VOTE! http://www.senate.gov and http://www.house.gov)
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