20% Drop in Housing to Cause Recession in 2012, Says Gary Shilling (Tucson: foreclosed, equity loan)

[cheesecurd]

Shilling says the shock to trigger the next recess is "another big leg-down in housing." (An asset class the Fed has not been able to reflate.)20% Drop in Housing to Cause Recession in 2012, Says Gary Shilling | Fin - Daily Ticker - US - Yahoo! Finance

[RickTucsonHomes]

Originally Posted by cheesecurd

Shilling says the shock to trigger the next recess is "another big leg-down in housing." (An asset class the Fed has not been able to reflate.)20% Drop in Housing to Cause Recession in 2012, Says Gary Shilling | Fin - Daily Ticker - US - Yahoo! Finance

Here is another interesting article on housing that came out recently. Debt forgiveness without being asked.
http://www.cnbc.com/id/43624123

[Kimballette]

Thanks for the links. Please limit the discussion to how this relates specifically to the Tucson area, not nationwide. This is not a political forum. Thanks.

[vjsoto]

Yup... no surprise there. My lender is Chase. Let's see if I get one of them principal reduction packages. I am underwater too, but not by 50%... yet!

[cheesecurd]

I bet my wife will find a nice home down there for a good price!. With the bad hot weather down there in August I think the buyer competition will be low!

[iflyjetzzz]

Originally Posted by RickTucsonHomes

Here is another interesting article on housing that came out recently. Debt forgiveness without being asked.
http://www.cnbc.com/id/43624123

I doubt this will happen in AZ. It's a nonrecourse state. The banks are converting nonrecourse loans into recourse refis. The debt forgiveness is just the distraction to keep them from reading the new contract.

[robabeatle]

Jus thought I'd add this here:
I walked from my home in Tucson when the mort was at $156K. All monies were used to purchase the house, no refi or equity loan. The home was foreclosed after 8 months. It was sold to a flipper for $51K.
No further actions have been taken by the bank, not that they have any options being a nonrecourse state.

[_Charles_]

Originally Posted by robabeatle

Jus thought I'd add this here:
I walked from my home in Tucson when the mort was at $156K. All monies were used to purchase the house, no refi or equity loan. The home was foreclosed after 8 months. It was sold to a flipper for $51K.
No further actions have been taken by the bank, not that they have any options being a nonrecourse state.

You still might have tax liability - check with a tax accountant.

[sholomar]

I'd rather have housing be affordable then be cash cows and investments for flippers. A place to live, not a ticket to the easy life simply for owning one.

[Boompa]

I don't see how much below construction cost housing can go. The frightening part is all of the speculators buying up the bottom of the market thinking they are going to make money.