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Well, there a millions of people who have had to rent (self included and not that its a bad thing to rent) the last 7 years who could not afford homes while they were skyrocketing out of control.
And those who did buy homes at that time did it with fuzzy math mortgages.
Prices have to come back in line.
yeah, i agree with all that. there was a huge bubble that had to pop eventually, and those who were priced out of the market will now benefit.
but the more home values drop, the more people holding underwater mortgages will walk away from them -> even more foreclosures and property devaluations, ad nauseum. there's got to be a bottom here somewhere..
it will probably get even worse when the first-time buyer credit expires soon.
yeah, i agree with all that. there was a huge bubble that had to pop eventually, and those who were priced out of the market will now benefit.
but the more home values drop, the more people holding underwater mortgages will walk away from them -> even more foreclosures and property devaluations, ad nauseum. there's got to be a bottom here somewhere..
it will probably get even worse when the first-time buyer credit expires soon.
Yup. I'm likely not going anywhere for a while. Although, I'm at the < 150K level so absolute value wise I'm unlikely to lose as much as the McMansions priced over 300K. Percent wise, who knows?
yeah, i agree with all that. there was a huge bubble that had to pop eventually, and those who were priced out of the market will now benefit.
but the more home values drop, the more people holding underwater mortgages will walk away from them -> even more foreclosures and property devaluations, ad nauseum. there's got to be a bottom here somewhere..
it will probably get even worse when the first-time buyer credit expires soon.
The bottom is when the foreclosures are cleared out. The banks have to start moving those along.
And why would anyone expect otherwise. People out of work are likely to still be out of work. People who took on loans they couldn't afford still cannot afford them, modifications and all. And, why wouldn't people assume that the government will swoop in to save the them at the end of the day when that's what Obama wants anyhow... complete and utter dependence on the government.
I'm going to purposely default on my mortgage so Obama can pay for it instead of me. Oh I mean the taxpayer, although Obama along with many others think it is his money.
"More than half of U.S. borrowers who received loan modifications on delinquent mortgages defaulted again after nine months"
Banks will not modify loans until the owner's loan is delinquent. If you are all caught up and responsible, they will not modify. You have to be several months late in order for them to consider you for a loan mod. No wonder they are defaulting. Not to mention that many loan modifications take 9 months to be approved. Add that to 3-5 months late and you are looking at 12 months behind in payments. Bankers are incompentent, no wonder they are defaulting. Modify the loans quickly before they are late, do this only for the customers who have been responsible, and you will see this number drop drastically.
And why would anyone expect otherwise. People out of work are likely to still be out of work. People who took on loans they couldn't afford still cannot afford them, modifications and all. And, why wouldn't people assume that the government will swoop in to save the them at the end of the day when that's what Obama wants anyhow... complete and utter dependence on the government.
Debatable. Myself, my wife ad many others I know in the Tucson area are strugglig, but are being responsible and paying off houses that are underwater. Too many responsible people are being made to pay for the mistakes of the banking industry and house flippers.
Loans don't need interest rate readjustments. They need value readjustments. If your home is worth 25% less than the mortgage you took out on it, it gets lowered to that value. This would have been a win win for all parties (except maybe the banking industry, but its primarily their fault anyways). Deflate the bubble, plain and simple.
This should have been an option for people months ago and could have averted a lot of this recession. Fewer people lose their homes, more people who are responsible have more money to spend, thus stimulating the economy. Less foreclosures, fewer homeless, everything. Why this wasn't done is beyond me.
If you're this solution would reward the irresponsible, first of all, I'd rather reward irresponsibility accidentally, than punish responsibility accidentally. Second, make it optional for people to get the readjustmet done, and if they agree to it, they can't sell the house in the next five years, for more than the value of the house at the time they enter into the agreement.
Right now, the solution is punish everybody in the hopes of catching a few people who deserve it. This doesn't make sense to me and only a few rich people actually win out when the banks foreclose on homes.
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Green shoots! Half of home loan modifications default
