Editorial Comment: Actually the number is far higher. We compute it as around 45% when all is said and done. First of all there is consensus that property values are actually around 15% less than seller’s are asking. Second costs of selling the home makes up the rest, taking another 6-10% off the selling proceeds. […]

Tags: ASSOCIATIONS, auto loans, Bloomberg, borrowers, community banks, credit cards, credit unions, daniel Taub, investors, jingle mail, property values, securitized loans, strrategic defaults, student loans, TARP
Posted in bubble, Corruption, Eviction, securities fraud |

New research suggests that when a home’s value falls below 75 percent of the amount owed on the mortgage, the owner starts to think hard about walking away, even if he or she has the money to keep paying. See the whole article in New York Times. Extensive discussion of the issue. It’s beginning to […]

Tags: David Streitfeld, house arrest, jingle mail, New York Times, principal reduction, strategic defaults, walking away
Posted in bubble, Corruption, Eviction, securities fraud |

Mortgage Meltdown: Cat Writes: cat All good but why would I want to keep paying on a house that I owe $450,000 that is only worth $325,000 at best. From HUD RELEASES TIPS FOR AVOIDING FORECLOSURE, 2008/04/22 at 9:42 PM EDITOR’S RESPONSE: THERE ARE ONLY TWO REASONS YOU WOULD WANT TO HOLD ONTO THE HOUSE — MONEY […]

Tags: HUD, jingle mail, money, mortgage payments, stress
Posted in bubble, Eviction |

This CNN reporter makes some good points, although contrary to the philosophy expressed in this blog site.  Our premise has been to stop the clock, freeze foreclosures and evictions and work out a plan that gives the occupant a chance to make payments, maintain the home, and reinstate the defaulted loans so that bank balance […]

Tags: home prices, jingle mail, renting
Posted in bubble, Eviction |