Maybe the obamessiah will help them!
Posted on 08/05/2009 4:59:54 PM PDT by Need4Truth
NEW YORK (Reuters) - The percentage of U.S. homeowners who owe more than their house is worth will nearly double to 48 percent in 2011 from 26 percent at the end of March, portending another blow to the housing market, Deutsche Bank said on Wednesday.
(Excerpt) Read more at reuters.com ...
Undoubtedly Barry’s response: We “inherited” this...i.e.: Bush’s fault.
>> all these Obamanomic green shoots
I’m pretty sure that’s just mold. :-)
This is bad, bad news. It will be interesting how and if this is reported.
I am thinking next time around it will not be cash for clunkers, it will be cash to help those rise above that water. I will bet anything, they will do something and give each family some kind of check.
If you agree with their assumptions that home prices will continue to fall significantly. I think there is real concern with the homes in the jumbo loan market, because banks are still reluctant to make jumbo loans. That lending practice will continue to put downward pressure on higher priced homes. But i think the under $500K market has stabilized and the market will slowly weed through most of the bad loans in the past.
>> where’s the recovery going to come from in a consumer-based economy?
Why, from Government Jobs — “The Sustainable Economic Engine (tm)”
A US economy built on Government Jobs will lead us into the twenty-second century and beyond! With the hammer of industry in one hand, and the sickle of agriculture in the other, join us as we march forward into glory!
I mean, it worked out so well for the Soviets, didn’t it?
Better to shoot the Greens who are causing economic destruction. How many will be foolish enough to pay a 200,000 mortgage on a 100,000 house? The house of cards is coming down.
I am ever so grateful that we purchased our home before the big housing bubble and didn’t mess with any type of funky loan. Our sturdy, 2800 square foot, block house will maintain its’ value. I can’t see us ever being upside down in our mortgage.
Your post is correct.
But I doubt politcians/Washington will allow the high end market to collapse much further. Look for bailouts in that market and commercial real estate.
The U.S. economy is hocked to the eyeballs but that has not stopped Washington so far.
Yeah, now they are buying ‘cash for clunker’ cars....outcome will be the same.
Call me a skeptic but I find the 48 percent number difficult to believe
Maybe the obamessiah will help them!
Wow that’s a chilling story.
I was able to downsize and sell my place this spring in Indiana. Got much less than I hoped but was able to buy at a similar discount and get into a smaller energy efficient house.
Just like Social Security and Medicare getting swamped as baby boomers retire and transition from tax payers to tax receivers, I think the house market will suffer in a similar way.
How silly it is to pay off one’s mortgage ahead of time and live debt free. The bailouts and reparations will just keep coming for those who don’t give a $hit about personal responsibility.
BS
48%- yikes, this is hugh and series
and that doesn’t include the coming crash of commercial property
I asked this question on another thread, but would like to reiterate: Are the people trading in their clunkers for new cars being qualified in any way? Who determined that these people can AFFORD TO PAY for the new car?
In answer to my own rhetorical question, I would opine that probably NOBODY qualified ANYBODY. So what happens in a few months when hundreds of thousands of car loans go into default and the repo man shows up?!
I go down to the used car lot and pick up the vehicle I want with 4-6 thousand miles on it for about 50% of it's recently departed MSR price.
And I still have my "clunker" as a backup.
Any questions?
Market up on better than expected disaster.
Like you I pay as I go. Not retired but I don’t owe anybody anything. Nor will I ever.
What’s wrong with working until one is dead? I like debt and I like working. Both allow me to enjoy things in life that many others can’t.
And yet, in far too many instances, home owners are asking for more than they paid for a property just a few years ago (say 2004).
I looked at several properties recently where this was the case.
Partially, I believe this insanity is driven by plain greed ("I MUST make a profit when I sell like everyone else"), and perhaps partially by fear ("I re-financed and used my home like an ATM, so now I have to ask for more").
Either way, it is going to lead to more destruction, especially in states like California, Nevada, and Florida.
Many, many homes should be recorrecting back to 1997 prices is some cases.
Well, I have to agree with the sentiment. I am paying my debt off, and some of it early.
But, my wife reminded me that the Bible tells us to pay it off, and stay out of debt.
From an article I read:
The borrower is slave to the lender. When you are in debt to another, you enter into a slave/master relationship with your creditor. (Proverbs 22:7) God wants us to lend to others. Obviously, this is difficult if you don't have anything to lend. (Deuteronomy 15:6, 28:12, Matthew 5:42) We are required to pay back what we borrowed. It is easy to take this lightly, but if we borrowed it, we should pay it back. (Psalm 37:21, Ecclesiastes 5:4).
You will be much better off. Believe me.
The deadbeats will get theirs. And it won't be pretty.
I like debt and I like working.
The way things are going I wouldn’t be surprised if within a year or two I might be able to buy a mansion...but I won’t be able to eat unless it has lots of pecan trees full of squirrels in the yard.
Eventually, but don't hold your breath. Banks have thousands of homes in foreclosure that they have withheld, aren't even on the market. It will be a long time indeed before all these turkeys bleed out.
Well, being "under water" doesn't necessarily mean in trouble or facing foreclosure. Lots of us have homes that are worth less than their mortgage but have no trouble making the payments, have no reason to sell, and so being under water is not a problem at all. Just an accounting anomaly.
It will be a long time indeed before all these turkeys bleed out.
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Truly this is a crash rather than a recession as some still believe. I hate to be so negative but I see no realistic possibility for any kind of recovery soon. On the other hand I can see all kinds of reasons to expect that within a very short time today will look like the “Good old days”.
This is a well-known and perennial phenomenon. Home owners routinely and irrationally overvalue the home that they own. Plus, many have acquired the rather ludicrous notion that with the passage of time they are owed a profit more or less automatically. When they get an impartial assessment they often are rudely disappointed.
I agree.
A couple who moved to NJ from China put in an offer on a home down the street from us. It wasn't "asking price", but darn close. The owners took offense, and decided to play games with the seller, seeing how much more they could split the difference (and how many times they could get away with it).
The Chinese couple with lots of cash got tired of being pushed around and withdrew from the deal.
Now, the homeowners are in panic and shock.
I agree. But then again, you seem like a reasonable and responsible person.
What worries all the suits are the millions of yahoos who have the loans that are built on a house of cards (you know the ones.....every variation under the sun) that "reset" very soon.
The full impact of that is going to be felt like a flash flood.
I’m still surprised that this 60 Minutes report has not gotten more play.
It clearly predicts the coming 2nd wave of foreclosures.
http://www.youtube.com/watch?v=iUuROWEMjm0&feature=fvw
This is not a “subprime” crisis, as has been portrayed.
Subprime was the first link to break in a massively over stretched chain.
It is a “debt” crisis and it encompasses incomprehensible amounts of debt... individual, corporate, municipal, federal debt in the tens of TRILLIONS.
Thinking that something like Cash for Clunkers is going to help is like thinking that a life-jacket would get you through hurricane Rita.
The storm is just too big.
I see what you are saying.
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