[TigerLikesRooster]

Ping!

[djf]

I’m fairly competent at reading the English language.

I liked this article so much I read it twice...
and still don’t know what the H this guy is trying to say!

He represents EXACTLY why we are in deep shinola. Doublespeak and three card monte!

[blam]

"All home owners think that their home is worth the most on the block and I have been told that this is a tough pill to swallow. This brings the crisis home instantly. "

This is exactly the news contained in the real estate section of our local newspaper a couple weeks ago.

[UB355]

We are doing a refi to well under 5%. An appraisal is done as part of the process, duh. So we expect the appraisal to show a lower value then in the past. Great ammo to go to my local taxing authority and have them drop the market value to reflect reality.

[Oldpuppymax]

Fortunately, I own my home and have for some time. But were I a mortgage holder, the loss of substantial equity would certainly not drive me stop making payments or force me to sell at a loss. After all, I would still need a place to live! It seems quite obvious that those who are not making payments are either the quick profit seeking speculators or the owners who could not afford to make those payments in the first place.

[Rapunzel]

Taxing authorities will not reduce your appraised value unless you contest it and even then the taxing authority will use data a couple of years old which are still the over valued prices people were willing to pay. So many others that did not buy a new home at the high prices did take the equity out of their home(HELOC) and now want to refi and the value is less than they want to believe. Now even those are upside down. And where will they be in another couple of years when interest rates are 15% and they need to refi their 0% loan into a 15% loan!

Fearful and interesting times we live in.

Payoff debt and collect drygoods and ammo.

[Freedom4US]

Translation: “Your house is worth less, and your credit score / FICO has gone down, and the rates you read about don’t exist”

Okay.

Can someone explain what “recourse” means with respect to mortgages?

[WashingtonSource]

While it is true, equity has gone through the chimney in -the formerly hot markets, people forget that the vast majority of the country never had runaway price increases. Mortgage refinancings work fine for these people. Even in markets where prices got out of control, there are millions of people who bought their house before the boom. These people can refi, too. We’re in a bad situation, but seeing everything with nothing but doom and gloom is not facing reality but indulging in emotion.

[Old Professer]

The headline has no real relationship to the article except as a ‘shoehorn’ to fit it in past your common-sense firewall; the interest rate is real - what the writer’s complaint amounts to is just a rehash of the fact that mortgage brokers are somewhere below pond scum and used car salesmen in the sceme of things.