10M US homeowners owe more mortgage than house's value

W

Wallace

" Because of the decline in house prices that has already occurred, more than
10m home owners now have mortgages that exceed the values of their house.
This is 20 per cent of all homeowners with mortgages. For half of that negative
equity group, the debt exceeds the house value by more than 20 per cent.
If house prices fall another 15 per cent, negative equity mortgages will rise to 20m."
Martin Feldstein
http://www.thedelphicfuture.org/2008/08/martin-feldstein-on-housing-spiral.html
and see chart via 'game-over' link

U.S. Home Defaults, Foreclosures Rise 60% in February 08
"More than 223,000 properties were in some stage of default, or
1 in every 557 U.S. households"
http://www.bloomberg.com/apps/news?pid=20601087&sid=a5A1eM9cz5Bk&refer=home

Fitch Ratings forecasts new wave of home loan defaults in United States
The Associated Press September 2, 2008
"The credit rating firm analyzed a crop of option adjustable-rate mortgages taken
out between 2004 and 2007 and concluded that most will recast to higher payments
in 2009 and 2010."
http://www.canadianbusiness.com/markets/headline_news/article.jsp?content=b0902161A
 
You'd think people would be used to this by now. C'mon, anyone who bought a car or truck owes more than it's worth from day one.
 
Quote from Wallace:

" Because of the decline in house prices that has already occurred, more than
10m home owners now have mortgages that exceed the values of their house.
This is 20 per cent of all homeowners with mortgages. For half of that negative
equity group, the debt exceeds the house value by more than 20 per cent.
If house prices fall another 15 per cent, negative equity mortgages will rise to 20m."
Martin Feldstein
http://www.thedelphicfuture.org/2008/08/martin-feldstein-on-housing-spiral.html
and see chart via 'game-over' link
More...


Well sucks to be them. That's the penalty for exercising poor judgement and getting in over your head. The other day I exercised poor judgement in a stock trade and lost $5,000. Where is my bailout?
 
Quote from Red_Ink_inc:

Well sucks to be them. That's the penalty for exercising poor judgement and getting in over your head. The other day I exercised poor judgement in a stock trade and lost $5,000. Where is my bailout?
More...

You need to get together with a bunch of other traders who lost on the same trade. Get enough votes, and you can have a bailout too! Free money, it's the best.
 
" Because of the decline in house prices that has already occurred, more than
10m home owners now have mortgages that exceed the values of their house.
This is 20 per cent of all homeowners with mortgages. For half of that negative
equity group, the debt exceeds the house value by more than 20 per cent.
If house prices fall another 15 per cent, negative equity mortgages will rise to 20m."
Martin Feldstein
http://www.thedelphicfuture.org/2008/08/martin-feldstein-on-housing-spiral.html
and see chart via 'game-over' link
More...

or 4 out 5 at or above value
house is not an investment, it's a place to store stuff so you can get more stuff [RIP G. Carlin)

U.S. Home Defaults, Foreclosures Rise 60% in February 08
"More than 223,000 properties were in some stage of default, or
1 in every 557 U.S. households"
http://www.bloomberg.com/apps/news?pid=20601087&sid=a5A1eM9cz5Bk&refer=home
More...


calculates to 124 million households so roughly .2%, if my math is right
 
"You need to get together with a bunch of other traders who lost on the same trade. Get enough votes, and you can have a bailout too! Free money, it's the best."
If youare going to be getting a group, count me in. I'll donate my 100,000 LEH shares to the cause...:D
 
Don't tell the feds you "lost the money trading" tell them that you were going to "lend" the money out but someone else asked for it first and you need more.
 
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