I'm putting this in Politics because this situation was manufactured by our government.
Some time ago, I made a comment in a thread that the results of government policies (taxes, entitlement burdens, inflation) have resulted in a massive transfer of virtually all wealth creation by the middle class since WWII to the cronies of the ruling elite.
Nothing exemplifies this con game better than the fact that 27% of homeowners in the U.S. are underwater on their mortgages.
27%.
And why? The government fueled speculative housing inflation on the pretext of making home ownership "affordable". As the proof is in the pudding, 27% of homeowners being underwater proves what an epic fail such social engineering do gooder programs are in terms of their stated purpose.
Of course, the stated purpose is sheep's clothing to transfer income and wealth from those who have earned to the politically connected.
ObamaCare will be even worse if we dont' kill it.
The number of U.S. homes worth less than their outstanding mortgage jumped in the fourth quarter as prices fell and lenders seized fewer properties from delinquent borrowers, according to Zillow Inc.
About 15.7 million homeowners had negative equity, also known as being underwater, at the end of the year, up from 13.9 million in the previous three months, the Seattle-based real estate information company said in a report today. The total represented 27 percent of mortgaged single-family homes, the highest in Zillow data dating to the first quarter of 2009.
Home prices are declining as foreclosed properties sell at discounts and unemployment at 9 percent limits buyer demand. Values will fall as much as 5 percent this year, putting more homeowners underwater, before finding a floor as the economy improves, said Stan Humphries, Zillows chief economist.
These seem like fairly grim numbers, Humphries said in a telephone interview. Were still expecting a bottom in home values later this year. And this, if anything, makes me a bit more confident because Im seeing very large corrections now, which means the market can start to repair itself. ...
Home-Price Drop Leaves 27% of U.S. Owners Underwater on Loans, Zillow Says - Bloomberg
If a large developer buys 80 acres, has it zoned for 240 lots and the bank loans him 80K a lot how is that "manufactured by government"?
That scenario is what caused 80-85% of the problem with "over speculation" as that was the root cause and that is where the BIG $$$$$ FORECLOSURES are.
What government employee, law, rule, regulation or policy FORCED ANY AMERICAN to sign loan documents that they would pay their bills?
That is a myth.
Those that lack the ability to hold themselves responsible for their actions blame others for their misfortune.
Conservatives never do that.