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 ago—but 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 ...
Same here...Even went through some tough runs around 2008 and few other bumps through 2012. All I had to do was pick up the phone and call my lender; we always worked something out that all parties were satisfied and the loan continued on.
I am thankful I didn’t buy a home outside my means; I would have lost it had I trusted the realtor and finance guy that said I could afford twice the amount of home...Dodged a bullet on that one.
I’m with you—I love 4 seasons.
I detest heat and would prefer cold all year over warm all year.
.
I agree that is a problem, and I sympathize with those people as well...
You just don’t get it do you?
Those that are “trapped” are those who are continuing to pay their mortgages but cannot sell or refinance or move because of the “value” of their house as compared to their loan balance.
The taxpayers have ALREADY bailed out all the scum...they got all the bennies offered up in the past few years to refinance if they were covered by FM or Freddie Mac...the rest are stuck.
Get ready to buy Democrat votes.
Yes, but we've already established that the taxpayers will bail out the company that holds your mortgage. Please feel free to take that into account when making your decision.
Too damned true.
two wrongs make a right. got it
I “get it” entirely. I saw the huge run-up, the “irrational exuberance”, in housing for what it was: a bubble.
That's what happened in my old neighborhood. Property values there still stink, and are well below similar areas in other parts of town, while other neighborhoods in the same town are recovering nicely. It was a heavily blue-collar area and a lot of folks here lost their jobs. I can think of one house that's just sitting empty, and has been for more than two years. No buyers, even at prices lower than dropping a manufactured home on the same sized lot in the same area.
They were from Texas and supported Republicans.
Ok, then we are in agreement
Me too. I know several people who thought their chosen retirement locale would be Paradise. After one summer in a muggy or desert state, they had had enough and moved again.
Me too. I know several people who thought their chosen retirement locale would be Paradise. After one summer in a muggy or desert state, they had had enough and moved again.
When the Government forced the Banks to Loan Money because the so called Playing Field wasn’t level, all bets were off.
I worked for a Major Bank back in the 70’s that had very strict Lending Guidelines in place. When The Community Reinvestment Act was instituted under Carter, the Bank pledged $10,000,000,000 to the Program.
I was talking to a Loan Office about it and he said that it was great Advertising, but many Loan Officers expected the Program to impact Loan Delinquency Rates since the Lending Guidelines were artificially lowered.
It was obvious from the get go. Reparations cost big bucks.
Don't give him any ideas ...
The FED is culpable in this mess as well - when they began raising interests rates, all those Adjustable Rate mortgages that were used to get ‘low income’ buyers in the market went south when the ‘Low Income’ buyers couldn’t make payments ...
Millions of homeowners should not have made stupid purchases - and lenders should not have made stupid loans. Neither mistake is my problem. FedGov and the states should enforce contract law, but they should not subsidize stupid decisions.
If you are in that situation, and can do so, that is the preferred option.
If you lose your job or get transferred, you are screwed.
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