New Series on Mortgage Crisis Coming Soon
I read this and it inspired me to create a new series about the Mortgage Crisis:
NEW YORK (CNNMoney.com) — More homeowners than ever are selling at a loss, propelling the real estate market deeper into crisis.
In the 12 months that ended June 30, nearly 25% of all homes sold nationwide fetched less than sellers originally paid, according to real estate Web site Zillow.com.
While the nation’s double-digit decline in home prices has been well documented, the new report underscores the economic force of those price declines. Homeowners are walking away with much less in their pocket when they sell. And that affects more than the real estate market.
“It’s stunning what’s happening out there,” said Stan Humphries, Zillow’s vice president of data and analytics, who looked at statistics that date back to 1996. “The numbers are the worst we’ve seen and it’s not just the magnitude of the problem but the scope – so many markets are affected.”
Nationwide, nearly a third of all homeowners who bought since 2003 owe more on their homes than the homes are worth. And those that … put little or none of their own money into the home purchases, are more likely to try to sell short or simply abandon their homes.
“They hand over their keys and walk away from the homes,” says Danielle Babb, a real estate investor, instructor at the University of California Irvine and author of “Finding Foreclosures.”
That adds to foreclosure rates. Zillow reported that nearly 15% of U.S. existing home sales during the last 12 months involved foreclosed homes.
That trend will almost surely continue.
The news media proves, once again, that they’re about six weeks to two YEARS behind when they report a story. If you see news, just assume it’s old.
I mean, they were talking about how 33% of home owners are upside-down on their mortgage, and “Gee, this crisis may be worse than we thought!”
And Danielle Babb’s quote? Excuse me, but these people “Walk away” after banks refuse to renegotiate in the face of OBVIOUS evidence that home values have PLUMMETED. The Banks, apparently, would rather take a huge hit on a foreclosure and get Government assistance … as opposed to work with individual borrowers.
So much for the efficiencies of Mass-Market banking. I guess one Call Center for the country doesn’t work WHEN THERE’S A CRISIS!
Anyway, in my new series, I plan on recounting my experiences in attempting to purchase a home the past three years. It was, and still is, a roller coaster ride.
If you’re wondering why I didn’t do this sooner … well, I did write about the Real Estate Market after Wilma. I won’t even bother linking to it — I’ve referenced it before. I have been on the cutting edge and people have ignored my words at their peril.
Similar Posts:
- Ground Zero for the Mortgage Meltdown Part VIII
- Ground Zero for the Mortgage Meltdown — Part I
- Ground Zero for the Mortgage Meltdown Part IV
- Random Thoughts on Financial Crisis
- Savage, Beck, Rush: war speeches, Lyndon Johnson, Barack Obama, fans of Mao, Obamacare, Real Estate Appraisers, bail bondsmen, small business, cap and trade
- Ground Zero for the Mortgage Meltdown Part III
- Mortgage Crisis Ground Zero After-math
Looking forward to this.
*****
“They hand over their keys and walk away from the homes”
has got to be one of the funniest (and worse) quotes.