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Old 08-25-2009, 08:42 PM
 
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A tsunami of home foreclosures is set to hit the US as banks are unable to keep bailing out tenants that can’t afford their rent and struggling home owners show their anger at the financial crisis by giving up on their mortgage, David Karsbøl, chief economist at Saxo Bank, told CNBC.

Tsunami of Home Foreclosures to Hit US: Economist - Economy * Europe * News * Story - CNBC.com
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Old 08-25-2009, 08:45 PM
 
9,880 posts, read 9,713,820 times
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Quote:
Originally Posted by AnUnidentifiedMale View Post
A tsunami of home foreclosures is set to hit the US as banks are unable to keep bailing out tenants that can’t afford their rent and struggling home owners show their anger at the financial crisis by giving up on their mortgage, David Karsbøl, chief economist at Saxo Bank, told CNBC.

Tsunami of Home Foreclosures to Hit US: Economist - Economy * Europe * News * Story - CNBC.com
I am astounded at the amount of people who openly post that they are walking away from their mortgages. I think this is anger and frustration.
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Old 08-25-2009, 08:50 PM
 
Location: Great State of Texas
86,067 posts, read 78,529,358 times
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Quote:
Originally Posted by pommysmommy View Post
I am astounded at the amount of people who openly post that they are walking away from their mortgages. I think this is anger and frustration.
If you just go over to the mortgage and/or real estate forums there are posts after posts about this. Many of these people tried to work with the banks who are refusing to help them. When you are hundreds of thousands of dollars under water what other choice do you have ?

It's really a sad state of affairs when the government hands billions to the banks to help the mortgage crisis and the banks hoard that money instead so they can make their profits and hand out bonuses

I can't blame these homeowners one bit. These are not the flipper types..not this long into the crisis. The flippers and those who couldn't qualify got their come uppance last year.
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Old 08-25-2009, 08:52 PM
 
Location: Raleigh, NC
9,043 posts, read 12,217,500 times
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Why would anyone stay in a home that is 30K underwater with little hope of breaking even for many years? Why not just walk away, take the credit hit and apply for an FHA loan with 3% down 2 years later?
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Old 08-25-2009, 08:54 PM
 
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Incredibly, denial is still very fashionable - at least in California. According to HousingTracker.net (HousingTracker.net | Residential Real Estate Listing Statistics by City), the median asking price in San Diego and Los Angeles is back to up $400-$450,000, and most homeowners seem to think this is perfectly fine and acceptable. If I try to say anything negative about the market, they act as if I'm the one who's crazy.
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Old 08-25-2009, 08:56 PM
 
Location: Raleigh, NC
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No one in their right mind should be buying homes unless they plan on staying in it for at least 10 years MINIMUM. The market has way too much to fall further after the credit eventually expires and interest rates go up.
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Old 08-25-2009, 09:01 PM
 
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With all of the moratoriums on foreclosures in California, it's been possible for a mortgage holder to live in his house for up to an entire year without paying a dime. The latest moratorium is supposed to end September 15. We'll see if the government extends it even further.

It's madness, I tell ya.
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Old 08-25-2009, 09:02 PM
 
Location: North Carolina
795 posts, read 1,322,699 times
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Quote:
Originally Posted by AnUnidentifiedMale View Post
A tsunami of home foreclosures is set to hit the US as banks are unable to keep bailing out tenants that can’t afford their rent and struggling home owners show their anger at the financial crisis by giving up on their mortgage, David Karsbøl, chief economist at Saxo Bank, told CNBC.

Tsunami of Home Foreclosures to Hit US: Economist - Economy * Europe * News * Story - CNBC.com


I don't think people are really giving up on their mortgages because of the bailouts. It has more to do with unemployment and low home values. People need jobs to pay their mortgage payments, taxes, bills, and other home related expenses. The people that have jobs may be looking at a home they paid $500,000 a few years that is only worth $300,000. I expect residential foreclosures to rise but I definately wouldn't say a Tsunami is on the way.
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Old 08-25-2009, 09:03 PM
 
Location: Here
11,542 posts, read 12,963,808 times
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Quote:
Originally Posted by AnUnidentifiedMale View Post
With all of the moratoriums on foreclosures in California, it's been possible for a mortgage holder to live in his house for up to an entire year without paying a dime. The latest moratorium is supposed to end September 15. We'll see if the government extends it even further.

It's madness, I tell ya.
You know they will.
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Old 08-25-2009, 09:29 PM
 
131 posts, read 165,154 times
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Quote:
Originally Posted by ViewFromThePeak View Post
Why would anyone stay in a home that is 30K underwater with little hope of breaking even for many years? Why not just walk away, take the credit hit and apply for an FHA loan with 3% down 2 years later?

What bank will loan to people who dumped a house after only 2 years?
Most of these people are finding it hard to even rent a place to live let alone buy something that quick.
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