Comments on: One in five homeowners in trouble with mortgages http://www.capitolhillblue.com/node/16486 The oldest political news site on the Internet Thu, 09 Feb 2012 18:29:37 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: gazelle1929 http://www.capitolhillblue.com/node/16486/comment-page-1#comment-46708 gazelle1929 Wed, 30 Nov -0001 00:00:00 +0000 #comment-46708 Yet again we see a headline which does not coincide with the underlying story. The headline is an implication that one fifth of all mortgagees are behind in their mortgages, while the reality is that one fifth of all homes under mortgage are worth less than the mortgage balance. That's not trouble if the home-owner continues to make monthly payments. Yet again we see a headline which does not coincide with the underlying story. The headline is an implication that one fifth of all mortgagees are behind in their mortgages, while the reality is that one fifth of all homes under mortgage are worth less than the mortgage balance. That’s not trouble if the home-owner continues to make monthly payments.

]]> By: woody188 http://www.capitolhillblue.com/node/16486/comment-page-1#comment-46711 woody188 Wed, 30 Nov -0001 00:00:00 +0000 #comment-46711 Can't imagine the loss should 20% of home owners decide to send in that jingle mail and walk away from the loan. Nevada seems particularly in danger with 28 percent owing more than 125 percent of their homes' value. There is no incentive to stay at that point unless you like paying more than something is worth. Send in the jingle mail, take the credit hit, and pick up something nicer for less money in a few years after all the fall-out subsides. Socially it's irresponsible, but these home owners have to start thinking about their own survival. No one else is going to save them from their bad decisions. Besides, it's only supposed to get worse, with some predicting housing values will continue to fall, losing as much as 80% of their peak value according to the pessimists. It is bad here in Ohio. I've seen a number of houses that were on the market last year get removed, only to now be re-added as the market slips further and the bank has taken over the properties. Short sales and foreclosure auctions seem to be the only things moving at any decent rate. And this is in Franklin County, where we are fairly well off due to our insurance and banking market underpinnings. It's much worse in the outlying areas and traditional blue-collar cities like Toledo where my mother and sister live. Can’t imagine the loss should 20% of home owners decide to send in that jingle mail and walk away from the loan. Nevada seems particularly in danger with 28 percent owing more than 125 percent of their homes’ value. There is no incentive to stay at that point unless you like paying more than something is worth. Send in the jingle mail, take the credit hit, and pick up something nicer for less money in a few years after all the fall-out subsides. Socially it’s irresponsible, but these home owners have to start thinking about their own survival. No one else is going to save them from their bad decisions.

Besides, it’s only supposed to get worse, with some predicting housing values will continue to fall, losing as much as 80% of their peak value according to the pessimists.

It is bad here in Ohio. I’ve seen a number of houses that were on the market last year get removed, only to now be re-added as the market slips further and the bank has taken over the properties. Short sales and foreclosure auctions seem to be the only things moving at any decent rate. And this is in Franklin County, where we are fairly well off due to our insurance and banking market underpinnings. It’s much worse in the outlying areas and traditional blue-collar cities like Toledo where my mother and sister live.

]]> By: Doug Thompson http://www.capitolhillblue.com/node/16486/comment-page-1#comment-46719 Doug Thompson Wed, 30 Nov -0001 00:00:00 +0000 #comment-46719 <p>I have to disagree with you. I define owing more than your home is worth as "trouble." You obviously do not. That's your right, but the headline stands.</p> I have to disagree with you. I define owing more than your home is worth as "trouble." You obviously do not. That’s your right, but the headline stands.

]]> By: Siannan http://www.capitolhillblue.com/node/16486/comment-page-1#comment-46723 Siannan Wed, 30 Nov -0001 00:00:00 +0000 #comment-46723 According to the Chicago Tribune, the median price of a home in Detroit in Decemeber was $7500. <a href="http://www.chicagotribune.com/news/nationworld/chi-detroit-housingjan29,0,5435392.story">Chicago Tribune</a> Scary. According to the Chicago Tribune, the median price of a home in Detroit in Decemeber was $7500.

Chicago Tribune

Scary.

]]> By: gazelle1929 http://www.capitolhillblue.com/node/16486/comment-page-1#comment-46732 gazelle1929 Wed, 30 Nov -0001 00:00:00 +0000 #comment-46732 No, the median price of a house SOLD in Detroit was $7,500. Bad as that is, it does not mean that the median price of all homes in Detroit is quite that low. No, the median price of a house SOLD in Detroit was $7,500. Bad as that is, it does not mean that the median price of all homes in Detroit is quite that low.

]]> By: gazelle1929 http://www.capitolhillblue.com/node/16486/comment-page-1#comment-46733 gazelle1929 Wed, 30 Nov -0001 00:00:00 +0000 #comment-46733 If my house goes into negative equity and I continue to make my monthly payments how am I in trouble? If my house has lots of equity and I fail to make my monthly payments am I in trouble? Yes. There is no correlation. But it's your web site and your headline. If my house goes into negative equity and I continue to make my monthly payments how am I in trouble?

If my house has lots of equity and I fail to make my monthly payments am I in trouble? Yes.

There is no correlation. But it’s your web site and your headline.

]]> By: Warren http://www.capitolhillblue.com/node/16486/comment-page-1#comment-46736 Warren Wed, 30 Nov -0001 00:00:00 +0000 #comment-46736 Gazelle and I NEVER agree except for now. —W— Gazelle and I NEVER agree except for now.

—W—

]]> By: Warren http://www.capitolhillblue.com/node/16486/comment-page-1#comment-46738 Warren Wed, 30 Nov -0001 00:00:00 +0000 #comment-46738 The situation remains bad. Here in Arizona we have whole cities that have mushroomed out of the desert in the past few years, like the city of Maricopa, where the entire net equity of the city is probably below zero. These cities mushroom out of nowhere constantly. A small town of less than a thousand can become a city of 50,000 in just a few years. Recently created boom cities are in deep trouble since most of the value of the real estate was created in the past few years during the housing bubble. How they will survive is problematic. [edit-add] Arizona has had booms and created ghost towns before... gold, silver, copper... Now we have created the next 'ghost towns' for a decade from now. Come visit! Your tourist dollars will be very welcome. —W— The situation remains bad. Here in Arizona we have whole cities that have mushroomed out of the desert in the past few years, like the city of Maricopa, where the entire net equity of the city is probably below zero. These cities mushroom out of nowhere constantly. A small town of less than a thousand can become a city of 50,000 in just a few years. Recently created boom cities are in deep trouble since most of the value of the real estate was created in the past few years during the housing bubble. How they will survive is problematic. [edit-add] Arizona has had booms and created ghost towns before… gold, silver, copper… Now we have created the next ‘ghost towns’ for a decade from now. Come visit! Your tourist dollars will be very welcome.

—W—

]]> By: almandine http://www.capitolhillblue.com/node/16486/comment-page-1#comment-46748 almandine Wed, 30 Nov -0001 00:00:00 +0000 #comment-46748 If the bank decides the difference between the market value and the mortgage is too great, the loan can be recalled. It's probably not likely... given the need to sell it again at the lower market price, but it can be done - and would - in the right circumstances. If the bank decides the difference between the market value and the mortgage is too great, the loan can be recalled. It’s probably not likely… given the need to sell it again at the lower market price, but it can be done – and would – in the right circumstances.

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