After three years of plunging real estate values, after the bailouts of the bankers and the revival of their million-dollar bonuses, after the Obama administration’s loan modification plan raised the expectations of many but satisfied only a few, a large group of distressed homeowners is wondering the same thing.
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.
In a situation without precedent in the modern era, millions of Americans are in this bleak position. Whether, or how, to help them is one of the biggest questions the Obama administration confronts as it seeks a housing policy that would contribute to the economic recovery.
2 comments:
Yep, I know some people trying to buy short sales right now, and the banks just drag their feet on those sales. I know some friends who gave up on the long wait for a short sale, and ended up buying a foreclosed home. If the banks would only speed up the process on short sales it would be a win/win/win for all the buyer, the bank, and the owner who is giving a last ditch effort at saving their credit so when they get back on their feet they could buy again.
Then the banks end up with the properties, and loose more money on a foreclosure, plus incur all the property maintenance, and sales costs, sales taxes, etc.
As the reports by the banks put fear in homeowners little is said about the protection of the homeowners. Now one problem the Banks will have in court is explaining how the corrupt deals were done against the homeowners. No bank wants to take any case to a Judge.
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