Fifty percent of Houses to be Underwater by 2011

Discussion in 'Economy' started by Neubarth, Feb 10, 2010.

  1. Neubarth
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    Neubarth At the Ballpark July 30th

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    NY Times Advertisement

    As for housing prices, Mr. Rosenberg expects further declines of 10 to 15 percent over the next few years. He pointed to the roughly nine million residential housing units available for sale across the country, a very high vacancy rate when judged against a total housing stock of 130 million units.

    If his forecast is accurate, the numbers of borrowers who owe more than their homes are worth will rise significantly. Mr. Rosenberg estimates that fully half of the mortgage-holding population in the country could be underwater by 2011.

    For now, these borrowers are getting little to no help from lenders — no surprise — or from the government. Indeed, the Obama administration’s loan modification program has more or less allowed banks that own second mortgages on troubled borrowers’ homes to continue to press for full repayment of these obligations.
     
  2. Neubarth
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    Neubarth At the Ballpark July 30th

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    If Mr. Rosenberg's projection is correct, the US economy is in for a world of hurt as more and more people default on loans. Deflation is a horrible thing for banks and farmers.
     
  3. Big Black Dog
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    Big Black Dog Gold Member Supporting Member

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    It's times like this that I am thankful that I owe nothing on the houses that I own. It's a good time to have your home paid off if at all possible.
     
  4. Neubarth
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    Neubarth At the Ballpark July 30th

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    I am still paying on my house, but the monthly payment is less than a Thousand Dollars, and I can still itemize the Interest and taxes and so on. I will not have to pay taxes in retirement.
     
  5. RetiredGySgt
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    RetiredGySgt Platinum Member

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    As long as one can afford the payment I see no problem with the house being worth less due to the economy, unless you do not want to stay in it. I bought my house to live in, not sell.

    My only problem is that if the market pays less for the property then the County should have to appraise it at the new lower rate.
     
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  6. uscitizen
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    uscitizen Senior Member

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    The problem stemmed from housing becoming a piggy bank and an investment instead fo a home.

    You contracted to pay XXX $ for it and you did. If the value goes down later and you whine....
     
  7. CrusaderFrank
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    CrusaderFrank Diamond Member

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    I thought this was another Global Warming thread
     
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  8. uscitizen
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    uscitizen Senior Member

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    Yeah me too from the title ;)
     
  9. Care4all
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    Care4all Warrior Princess Supporting Member

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    I guess Matt and me should take that approach, be happy we own our home outright with no mortgage....BUT, it still is killing us....we moved to maine in late 2006, bought our house in December of 2006....used our very hard to come by money and bought it....NOW, our house is worth anywhere from 30-40% LESS than the money we used to buy it..........:(:(:(

    This is very disheartening and we want to buy another home and move from this one, but taking a 45k hit when we sell it is just a little hard to swallow.... my parents are getting old and we need to get down to Florida, where they are soon enough, and we just are finding it hard to do that....

    And if the housing market is really going to continue to drop the price of our home, as this OP says, then we need to rethink our plans I suppose....and just take the major hit now....:(
     
  10. uscitizen
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    uscitizen Senior Member

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    But Care, The houses in FL will be underwater! Take your fins and snorkel.
     

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