Staggering Increase In Underwater Homeowners | “People’s emotional attachment to their property is melting into the air.”
Harris Real Estate University Students (and future students)….WAKE UP.
You need to 100% accept what is happening now in real estate…and what will happen next. Do not delude yourself into believing that short sales and knowing how-to list REOs is optional. The new normal in real estate is mastering these skills..
Here is a great article from DailyFinance.com
About 5.1 million mortgage holders (or roughly 10% of Americans with mortgages) will own homes that are worth 75% or less than what they owe on their mortgages by mid-June.
Here is another fun fact…10% off all homeowners WITH mortgages are 10% upside down…and 25% are 10% upside down!
This is the conclusion of a new study by First American CoreLogic given exclusively to The New York Times. One of the firm’s senior economists, Sam Khater, told the paper, “People’s emotional attachment to their property is melting into the air.” The most astonishing number in the study is that it would take $745 billion to get mortgages to the point where no home loans in the U.S. were underwater.
Isn’t that more or less the EXACT amount of money that the banks got via the bailout? SO, the same money could of been used to bail-out homeowners?
This research is another example of why the housing problems in the U.S. are so intractable. Building permits rose 11% in December, but housing starts were down. RealtyTrac recently forecast that about 3 million homes will go into foreclosure this year, up slightly from the 2009 numbers. A large number of interest-rate only mortgages will reset higher in the next two years, raising monthly payments on those loans.
Isn’t this whole mess,,,and seemingly never ending continuation of the mess…a direct result of so many homeowners being upside down? I hate the bailouts as much as the next guy but, isn’t it time someone points out the obvious…bail out the tax payers with OUR money…problem solved?
Without a solution, and there are almost certainly no solutions forthcoming, home values will continue to drop this year and probably into next.
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