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69% Say Those Struggling With Mortgage Should Sell, Buy Cheaper Home
Rasmussen Reports ^ | March 22, 2012

Posted on 03/26/2012 8:14:34 AM PDT by reaganaut1

While most Americans agree now is not the best time to sell a home, they feel stronger than ever that those struggling to pay their mortgage should sell their home and buy a cheaper one rather than receive help from the government.

The latest Rasmussen Reports national telephone survey of American Adults shows that just 19% believe the government should assist those struggling homeowners in making their mortgage payments. Sixty-nine percent (69%) think someone who can’t afford to make increased mortgage payments should sell their home and find a less expensive one. That’s up three points from January and the highest finding in nearly two years of regular tracking. Thirteen percent (13%) are undecided.

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


TOPICS: Business/Economy; News/Current Events
KEYWORDS: housing; housingcrisis; mortgagecrisis; mortgages
I agree, except that people with bad credit should not be getting new government-backed mortgages. They should rent.
1 posted on 03/26/2012 8:14:38 AM PDT by reaganaut1
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To: reaganaut1

So 30% think people should buy houses they can’t afford? Nonsense poll.


2 posted on 03/26/2012 8:16:30 AM PDT by DManA
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To: reaganaut1

Got to live within our means.

We’re fixing up our place and prepping to sell. Should walk away with enough equity to downscale a bit, find a foreclosure, and maybe even go debt free.

It’s time.


3 posted on 03/26/2012 8:19:48 AM PDT by lurk
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To: reaganaut1

If a person is struggling but not in trouble yet they should sell before they ruin their credit...

renting for a while until they get another job etc is not gonmig to hurt their ego

But will preserve their ability to but another house in the future...

also if they are that bad off they can get Section 8 housing...

thats help to pay rent based on the persons income..


4 posted on 03/26/2012 8:23:51 AM PDT by Tennessee Nana (Why should I vote for Bishop Romney when he hates me because I am a Christian)
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To: reaganaut1

weird poll...
Increased mortgage payments ? what increase ? can’t be ARMs anymore.
selling at what price ? who is buying ?


5 posted on 03/26/2012 8:24:21 AM PDT by stylin19a
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To: reaganaut1

I just heard about a friend of my daughter that did this. She got her home sold, bought a bigger, nicer home for far less money so her monthly payment went down by quite a bit. The house she just bought is an older home and the one she sold is fairly new- I told her the older home was likely much better built. The issue is in many areas it is impossible to sell a house, or people owe so much they cannot sell their house for enough to pay it off...doesn’t work for everyone.


6 posted on 03/26/2012 8:24:37 AM PDT by Tammy8 (~Secure the border and deport all illegals- do it now! ~ Support our Troops!~)
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To: reaganaut1

I just heard about a friend of my daughter that did this. She got her home sold, bought a bigger, nicer home for far less money so her monthly payment went down by quite a bit. The house she just bought is an older home and the one she sold is fairly new- I told her the older home was likely much better built. The issue is in many areas it is impossible to sell a house, or people owe so much they cannot sell their house for enough to pay it off...doesn’t work for everyone.


7 posted on 03/26/2012 8:24:58 AM PDT by Tammy8 (~Secure the border and deport all illegals- do it now! ~ Support our Troops!~)
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To: reaganaut1

These polls are a little silly; individual circumstances widely vary, and make buy/sell decisions very unique to the owner.

If you’re $50k underwater, it may be better to “struggle” with your current mortgage. If you’re at a break-even point, selling may be a good option, but buying something else may not be.

But I agree wholeheartedly with you: no more government backed mortgages. I’m currently in a very bad position as an owner, and I just want this slow road to hell to end. It will not unless and until the we allow foreclosures, refi’s, etc. to proceed without government interference.


8 posted on 03/26/2012 8:25:03 AM PDT by Mr. Bird
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To: Tennessee Nana

It takes years to get section 8 someone has to die or leave the rolls so there is room for you.

We tried to buy a house. Underwriter killed the deal.

We bought a mobile home. Own it outright. Lot rent is less than property taxes on the house we wanted.

Best move we ever made.


9 posted on 03/26/2012 8:26:59 AM PDT by cableguymn (Good thing I am a conservative. Otherwise I would have to support Mittens like Republicans do.)
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To: reaganaut1
I don't have much sympathy for people who bought more than they can afford. On the other hand, there are plenty of people who can't afford their homes for situations beyond their control, such as loss of job or medical bills.

The problem with saying they should simply sell the more expensive house & buy a cheaper one is some people are so far underwater they don't have the cash to make up the difference between what it sells for today versus what was paid for it.

And, in that situation, if you don't have that liquid cash you're screwed.

10 posted on 03/26/2012 8:29:36 AM PDT by gdani
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To: reaganaut1

The only problem with that scenario is most of these people would actually lose money because they would have to sell below market and probably for less than they owe.

So, even though they could sell the house, they would still be in debt. (the bank isn’t going to forgive the balance)

Of course, the answer would have been not to buy above your means to begin with.

It’s one thing to buy an ‘affordable’ house with a bank loan, and another thing to buy your ‘dream’ house because you ‘want it’.

The rule of thumb, at least for me, is that if you can’t pay your mortgage with one pay check, then you can’t afford it.

But,that’s just me.


11 posted on 03/26/2012 8:29:42 AM PDT by Bigh4u2 (Denial is the first requirement to be a liberal)
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To: gdani

You beat me by mere seconds.!

Great minds and all..

:0)


12 posted on 03/26/2012 8:30:54 AM PDT by Bigh4u2 (Denial is the first requirement to be a liberal)
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To: Bigh4u2
You beat me by mere seconds.!

As someone who sold a house at a loss, I couldn't help but chime in. Luckily, it was a very affordable house & I only had to pay a few grand out of pocket for the loss.

Of course, I would have preferred not doing that(!) although I am happy, in today's environment, to be renting instead of owning.

13 posted on 03/26/2012 8:37:53 AM PDT by gdani
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To: reaganaut1

If the government really wanted to help they would have a program that would allow refinance with a balloon at the end. That would lower their current payment and allow for the market to increase over the years so when they sold they would either break even or have a small profit. They could turn it or refinance it long before the balloon came due.


14 posted on 03/26/2012 8:40:51 AM PDT by McGavin999
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To: reaganaut1
Why don't they just swap homes?

People who are ready and qualified to move up could exchange with those who are looking for a way out.

Fun negotiating game for kids of all ages.

15 posted on 03/26/2012 8:43:10 AM PDT by Glenn (iamtheresistance.org)
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To: reaganaut1

Its that improving economy ~ again!

Its those green buds....errr shoots

Signs are everywhere - Fore Sale. (Forcelosure/ Forced Sale)

With their new jobs and higher than expected incomes they can now afford to come out of arrears, increase payments and buy a larger home!

Right On Obama Stimulus!!! We have to thank Obama!


16 posted on 03/26/2012 8:43:52 AM PDT by himno hero (Obamas theme...Death to America...The crusaders will pay!)
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To: gdani

AND selling in a very stale market is not what the author pretends to be so easy a solution.


17 posted on 03/26/2012 8:44:56 AM PDT by MHGinTN (Being deceived can be cured.)
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To: Bigh4u2
“The only problem with that scenario is most of these people would actually lose money because they would have to sell below market and probably for less than they owe.”

Actually there is another problem, and it is the one that makes this situation so difficult.

Houses don't exist in a vacuum. They are part of a neighborhood. When the irresponsible buyers take their medicine and sell at a huge loss, they drag down the value of all surrounding houses. A friend of ours got caught up in this very scenario. They were fine, their immediate neighbors were fine, but a couple of streets over - oh brother.

Those were the last houses built in the development. The bank and the developer wanted to wind-up the deal, so they sold those houses with ‘aggressive’ financing. Most of the people that bought them had no financial business being in them. And they weren't for long.

Suddenly my friend and all of his neighbors, through no fault of their own, are completely underwater, . When his company offered him a pretty good promotion if he'd move to another location, the shellacking he'd take on his house made the move impossible. I don't believe this is an isolated example.

18 posted on 03/26/2012 8:50:00 AM PDT by I cannot think of a name
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To: reaganaut1

But, but, but what about all those janitors who bought $400,000 homes based on ... based on ... well, based on nothing? Should they have to get a home they can afford? Oh the insanity....


19 posted on 03/26/2012 8:50:13 AM PDT by GOPJ (Democrat-Media Complex - buried stories and distorted facts... freeper 'andrew' Breitbart)
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To: Bigh4u2
The only problem with that scenario is most of these people would actually lose money because they would have to sell below market and probably for less than they owe.

That's called a "sunk cost", it most likely will never be recovered. You should not factor in what you are losing in your decision, only in the impact of cash flow going forward.

20 posted on 03/26/2012 8:50:45 AM PDT by dfwgator (Don't wake up in a roadside ditch. Get rid of Romney.)
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To: gdani

“Of course, I would have preferred not doing that(!) although I am happy, in today’s environment, to be renting instead of owning.”

Anytime you have to ‘pay out’ to close a mortgage has got to be somewhat painful.

As it stands right now, I’m still able to make my payments (but just barely).

I haven’t had a raise in the past few years.

I basically agreed not to take one to be able to keep working and help the company from going under.

As it stands, things are ‘tight’,but hopefully, after November, things will pickup up and give me some breathing room.

My mortgage is low enough that renting, for me, would not be an option.

I wouldn’t be able to find an apartment for the price I pay for my house and I’m in a ‘low tax’ district, which helps too.


21 posted on 03/26/2012 8:51:51 AM PDT by Bigh4u2 (Denial is the first requirement to be a liberal)
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To: dfwgator

“You should not factor in what you are losing in your decision, only in the impact of cash flow going forward.”

The problem is, many of them have no ‘cash flow’ to begin with, hence the ‘loss’ of selling the house.

How do you qualify for a lower mortgage if you can’t meet your current one?

My wife and I have even discussed selling and moving to another area. But with the housing market being as week as it is, we wouldn’t have any money left over to buy another house. We would just about break even.


22 posted on 03/26/2012 8:59:38 AM PDT by Bigh4u2 (Denial is the first requirement to be a liberal)
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To: Bigh4u2

week = weak

:(


23 posted on 03/26/2012 9:03:09 AM PDT by Bigh4u2 (Denial is the first requirement to be a liberal)
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To: reaganaut1

But hardly anyone’s buying, believing the asking price will drop even more. There’s quite a few empty houses around here that have been that way for a year or more. I hear banks are sitting on their foreclosures, waiting for the economy to pick up so they can ask for a higher price (and get it).


24 posted on 03/26/2012 9:08:53 AM PDT by jeffc (Prayer. It's freedom of speech.)
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To: reaganaut1

Well that would be great except that a good percentage of people struggling to make mortgage payments have a house that is not going to sell for what’s owed on it. If they could they probably would sell.


25 posted on 03/26/2012 9:44:55 AM PDT by Georgia Girl 2 (The only purpose of a pistol is to fight your way back to the rifle you should never have dropped.)
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To: reaganaut1

I think 69% are idiots that have no idea that most people are under water on their mortgage and selling isn’t so simple as saying so. Maybe they should move out of their apartments and parent’s basments and show the rest of America how its done.


26 posted on 03/26/2012 9:51:13 AM PDT by CodeToad (I'm so right-wing if I lifted my left leg I'd go into a spin.)
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To: reaganaut1
You're over simplifying.

Some people who are not the straw man bad credit types who bought above their means are in trouble due to job loss and non-existent recovery. Renting, even downsizing to a smaller place like a 2 bedroom duplex, will be no less expensive than the mortgage payments they struggle to keep up with while looking for work.

In their local area they can't even sell because homes aren't moving, listings sit for months while some foreclosures are being held by banks for the market to recover.

27 posted on 03/26/2012 10:04:34 AM PDT by newzjunkey (Newt says, "A nominee that depresses turnout won't beat Barack Obama.")
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To: reaganaut1

My co-workers (mostly younger)told me to buy as much house as the bank will loan you because the price of houses would go up and your salary would go up. I bought a house that was half of what the bank would loan me. My youthful co-workers are in trouble now. There’s lots of people who intentionally overbought. Now, they want somebody else to bail them out. I would have liked to have that mansion overlooking the valley and then have someone else pay for it. What happens when you reward poor decision-making?


28 posted on 03/26/2012 10:26:32 AM PDT by blueunicorn6 ("A crack shot and a good dancer")
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To: blueunicorn6
You took the words out of my mouth. I was just going to post here that when buying your first home, you should always take the amount that the bank pre-approves you for and then cut it in half. So if the bank says you qualify for a $400,000 loan, then only shop for a home that is $200,000 or less. If you can't find a home you want in that price range, then you are not ready to purchase your first home yet.

My wife and I were pre-approved for something like $250,000 when we went shopping for our first home some 20 years ago. We ended up finding a three-bedroom ranch for $92,500 that was a real fixer-upper. But we were overjoyed to have a home that actually cost us less in monthly mortgage payments then what we were previously paying for rent and didn't mind at all that everything needed updating.

Over the next five years, we did landscaping, windows, doors, siding, roofing and a whole lot of painting and remodeling on the inside and had that house looking like new. I mean, we did EVERYTHING to that house. It ended up being a great experience because we got a real education on how to fix things around the house and that served us well in future years. We ended up selling that home at a nice profit and got a much larger home with a very affordable mortgage that we are just about done paying off.

Young couples should always get a fixer-upper as opposed to a home where everything is updated and brand new. You can afford much more house that way and it is better to fix things when you are young and still have the energy.

29 posted on 03/26/2012 10:53:29 AM PDT by SamAdams76 (I am 48 days away from outliving Phil Hartman)
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To: reaganaut1

WOW what a concept! Actually owning what you can afford.....LOL I am sill trying to figure out how all of these idiots slept through the part where they told them after the first year the interest rate went up and how much higher it could go than prime?


30 posted on 03/26/2012 11:00:42 AM PDT by chris_bdba
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To: DManA

30-35% of Americans are outright socialists or are socialist supporters, even if unwittingly or passively.

Yes, I’m sure that 30% of Americans feel that the rich should just support everybody from the money that grows on the trees in their yards, and when that money is gone, then just use the money that flows up from government wells.

Yes. 30% are that dellusional, dumb, or socialist. Yes.


31 posted on 03/26/2012 1:01:39 PM PDT by Freedom_Is_Not_Free (REPEAL OBAMACARE. Nothing else matters.)
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To: reaganaut1

“69% Say Those Struggling With Mortgage Should Sell, Buy Cheaper Home”

Wow, such naivety.

Anybody paying attention with half their brain would also notice that the home values have dropped and most houses are underwater. On top of that NOBODY IS BUYING!

JB


32 posted on 03/26/2012 4:07:41 PM PDT by thatjoeguy (MAYDAY! MAYDAY! We are so going in ! !)
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