Nationally, 20% of mortgaged homes are worth less than is owed.
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Here's a shocker: almost half of Nevada homeowners with a mortgage owe more to the bank than their homes are worth.
Here's another: If you add in the homeowners like them in California, Arizona, Florida, Georgia and Michigan, together they account for nearly 60 percent of all homeowners who are "underwater" on their mortgages.
Nationwide, almost one out of every five homeowners with a mortgage owes more to their lender than their properties are worth. But if you subtract those states, the rate drops to about one in 10, according to a report released Friday by First American CoreLogic.
Location, location, location. Sometimes it works in reverse.
WC Fields said it best, "Never give a sucker an even break."You have to be able to afford the bandwagon you jump on, so I just can't muster any sympathy for someone who buys a home simply because of where it is without weighing the resale value before signing the mortgage papers. The sale price of my home when I bought it was three thousand less than the assessed value, and the best deal I ever made.
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just can't muster any sympathy for someone who buys a home simply because of where it is without weighing the resale value before signing the mortgage papers.
Most ofthose homes were worth the mortgaged value when the mortgage was signed. Then real estate market went into the sewer.
just can't muster any sympathy for someone who buys a home simply because of where it is without weighing the resale value before signing the mortgage papers.
Most ofthose homes were worth the mortgaged value when the mortgage was signed. Then real estate market went into the sewer.
And I suppose this is GW's fault? What exactly are we to do about this in order to correct it? Only time can right this problem and the good news is? It's not my problem.
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John Adams “The moment the idea is admitted into society that property is not as sacred as the laws of God, and that there is not a force of law and public justice to protect it, anarchy and tyranny commence.”
Ronald Reagan: 'Everybody that is for abortion has already been born'
"I never said I was worth it. I only said I wouldn't do it for less " William F. Buckley Jr.
It's not any one person's fault. It's a matter of people paying too much. Some people paid too much because they were greedy and wanted to speculate. Others just got caught up in the bubble. In any event, bubbles burst, and some people got the worse end of it.
Location: On an Island in the west coast of New England
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RE: 20% of Mortgaged Homes Worth Less Than Owed
Real estate and the high prices are cyclical. All anyone has to do is hold on and they will return. My wife got her brokers license in 1988 and went through avery slow market. She was barely able to make ends meet until the turn around in early to mid 90's and then couldn't keep enough ink in the pen towrite contracts up until last year.The only way for high prices to remain are periodic corrections. Same with the stock market.
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Too busy with fishing to spend much time here.
The fact that your home is worth less than you owe is not really relevant. Your mortgage payment won't increase or decrease if the "value" of your home changes.
just can't muster any sympathy for someone who buys a home simply because of where it is without weighing the resale value before signing the mortgage papers.
Most ofthose homes were worth the mortgaged value when the mortgage was signed. Then real estate market went into the sewer.
I don't want to beat up on you Falcon, but your response doesn't fully address the point. A 1000 square foot home selling for $500,000 is overpriced -- notwithstanding that itfits in with the comparables of that neighborhood. You have to look at that house and ask what is driving that price and is that factor, whatever it is, going to sustain long term? Ocean front property near Monterey, California .. . maybe that value can sustain. Nowheresville in Lodi, California . . . dubious.
Adults are not required to risk their money. They don't have to buy stocks. They don't have to enter into a mortgage to buy a home. They don't have to take a car loan. These are matters of choice. There is risk involved, and it is the nature of being an adult that you consider the risks before committing -- you look before you leap, as my mother liked to say, usually after her children leaped without considering the consequences. A very common risk in these financial committments is the risk of getting into a bubble -- an investment bid up beyond any realistic value, everyone knows this is the case, but what they don't know is when the bubble will burst and greed motivates them to stay in. You have to be aware and careful. As the Romans said -- caveat emptor.
I don't sympathize either. If someone is giving out sympathy or $$$ to make losers feel better, I want to get in line for my share of sympathy and $$$ for my losses in the 2001-2003 technology stock crash. Can you say JDS Uniphase?
20% of Mortgaged Homes Worth Less Than Owed
