Skip to comments.11.3 million homeowners underwater on mortgage
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 ...
“but Ill 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.
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.”
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.
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.
“No, I dont think were 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.
No, your confusion is in thinking I ever ranted about their whining stupidity.
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.
Neidermeyer, thanks for your patriotism.
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.
Fruits of outsourcing.
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.
you mean people actually laughed at you? how awful to be surrounded by such people...
I’m over it now. I can afford Patron now.
Others can eat noodles too.
oh--my favorite... Patron Silver... smooth... Patron also has a Platinum...
I guess i can see your point...but look at it this way...other peoples kids will be paying your social security benefits.
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?
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.
Neidermeyer isn’t the one serving... but the one b@#*&ing about having to pay for someone who is.
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.
“And if youve 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.
“Plus, if youve 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.
I take it you didn’t have a rental agency screening potential renters?
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.
The foreclosure process.
It’s not as quick or easy as you might think... and there are a ways to reset the entire process.
Depends on the banks and the situation. The process is filled with lawyers taking advantage of people, banks not responding, and desperate people.
If you have zero equity, how can you be a “homeowner”?
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.
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