Skip to comments.Millions of 'underwater' homeowners are trapped
Posted on 03/17/2015 9:38:51 PM PDT by george76
Some 5.4 million homes, or 10.4 percent of all homes with a mortgage, were still in a negative equity position, or "underwater," in the fourth quarter of 2014, according to CoreLogic, as their owners owe more on the mortgage than the home is currently worth. This is down considerably 18.9 percent, from a year agobut it still keeps these borrowers from putting their homes on the market, because they would lose money. ..
Additionally, of the 49.9 million U.S. homes with a mortgage, approximately 10 million (20 percent) have less than 20 percent equity, and 1.4 million have less than 5 percent, according to CoreLogic. These homeowners also would have a difficult time selling because not only would they lose money in the process, but they also might not qualify for a new mortgage.
(Excerpt) Read more at cnbc.com ...
I DON’T care.
How about they just make the payments and pay it off?
The numbers do not add up. Surely those under water have less than 5% equity?
Shirley, you jest.
I though The One Who Shall No Be Named fixed the “Housing Crisis”.
Both my homes are paid off, only property and maintenance costs now.
Moral of the story is “DON’T BITE OFF MORE THAN YOU CAN CHEW”.
Nah, it’s better to just walk away and leave your neighbors with the eyesore abandoned house and the lowered property values.
I think borrowers should fulfill the terms of their contracts.
If the contract is “non-recourse”, turning the property over to the lender in good condition meets the legal and moral terms of the contract if payments are current.
There’s nothing like not having a mortgage.
Millions on the brink?
I was told the economy is great, lots of good paying jobs, and millions more good jobs are popping up all the time.
The house next door to me has been vacant for 4 years. The COP who lived there took out a second and bought a really big boat and then just stopped making payments, saved up a ton of dough, bought a new house (using his wife's credit) and walked away leaving a boatload of trash in the front yard and back yard.
In order to keep the weeds down, the bank or somebody poisoned the front yard with gallons and gallons of Grass killer and of course it killed my lawn because of the downhill run off.
As far as I can tell it has still not been foreclosed on. The bank is just sitting on it waiting for the market to get back to where they can sell it and not lose a lot. However the guy was $450,000 upside down when he walked away and the house is probably not worth more than $100,000 because it basically needs to be rebuilt.
In the old days this cop would have gone to debtors prison.
That’s what I am doing - paying it off, but it ain’t pretty. Nine years ago I moved to SW Michigan for a job and paid what I thought was a fair price at the time for a very modest house - now I would be lucky if it would sell for half of what I paid. Chump change to some people, but not to me. I retired from my job and would like to move, but it will be at a huge financial loss. So, yes, Trapped does come to mind.
The cop did wrong big time, and so did the PTB who caused these “Bubbles” in the first place - not a single one of those traitorous criminals have gone to prison. What again did the Enron boys do to deserve jail time yet Jon Corzine et.al. walks the streets. You are in California, so you have your own special kind of hell out there.
With bums all over the streets in the cities.
Let’s see if you should walk away... Only want to buy or lease a new car more than 4-5 years out - check (7 years would be perfect). Intend to live in a rental - check. Basically, can live on Ca$h or pay off existing credit cards at before due - check. You can walk away. It is only if you need credit in the next seven years would it pose problems. If you are completely retired, have gotten your money out of the home and want to walk away better off for the extra mortgages, - check.
It was 85 degrees today. It's been like that most of the winter. While you guys are freezing your collective @$$es off I've been spending my weekends BBQing and laying in my hammock and going to the beach.
Yeah, it's been "Hell".
I can check all those boxes, but I could never do that - will try to hold on until I can get at least what remains on the mortgage. The only upside is that young families are buying the houses on my nice little street, so that’s a good thing.