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Posted: 3/16/2011 3:31:46 PM EST
Not only that, but the US didn’t take advantage of the delay to solve the real problem underpinning the real-estate meltdown: unemployment. If we wanted to spend tens of billions of dollars stalling foreclosures, then we should have simultaneously implemented pro-growth reductions in regulation and taxation to jump-start job creation and get people back into position to pay their mortgages — which would have been the only way to avoid the deluge of foreclosures that are coming or already are arriving. Instead, we expanded regulation directly on employment (ObamaCare) and investment (Wall Street regulation) and have barely touched the millions of people who lost their jobs in the Great Recession.


Link
Link Posted: 3/16/2011 3:46:08 PM EST
Link Posted: 3/16/2011 3:59:32 PM EST
[Last Edit: 3/16/2011 4:04:33 PM EST by Easy_E]
Originally Posted By Waldo:


It's a little deeper than just no jobs. Many people that are working, have good jobs, and might want to buy a new home can't because they are upside down on their current mortgages. They're stuck.


I don't understand how a couple that has the same jobs , same pay and same mortgage instantly are upside down in their mortgage when times get bad ? Are they looking at property values and get buyers remorse ?
Link Posted: 3/16/2011 4:04:15 PM EST
Originally Posted By Easy_E:
Originally Posted By Waldo:


It's a little deeper than just no jobs. Many people that are working, have good jobs, and might want to buy a new home can't because they are upside down on their current mortgages. They're stuck.


I don't understand how a couple that has the same jobs , same pay and same mortgage instantly are upside down in their mortgage when times get bad ? Are they looking at property values and starting to get buyers remorse ?


Because the house they owe 200K on is only worth 125K now if they try to sell and buy another house. So, since they can't eat the 75K difference, they stay in the house instead of buying another one.
Link Posted: 3/16/2011 4:07:19 PM EST
[Last Edit: 3/16/2011 4:07:48 PM EST by JAD]
Originally Posted By fxntime:
Originally Posted By Easy_E:
Originally Posted By Waldo:


It's a little deeper than just no jobs. Many people that are working, have good jobs, and might want to buy a new home can't because they are upside down on their current mortgages. They're stuck.


I don't understand how a couple that has the same jobs , same pay and same mortgage instantly are upside down in their mortgage when times get bad ? Are they looking at property values and starting to get buyers remorse ?


Because the house they owe 200K on is only worth 125K now if they try to sell and buy another house. So, since they can't eat the 75K difference, they stay in the house instead of buying another one.[/quote]

....At least they aren't deciding to up and quit on the mortgage.
Link Posted: 3/16/2011 4:09:08 PM EST
Originally Posted By JAD:
Originally Posted By fxntime:
Originally Posted By Easy_E:
Originally Posted By Waldo:


It's a little deeper than just no jobs. Many people that are working, have good jobs, and might want to buy a new home can't because they are upside down on their current mortgages. They're stuck.


I don't understand how a couple that has the same jobs , same pay and same mortgage instantly are upside down in their mortgage when times get bad ? Are they looking at property values and starting to get buyers remorse ?


Because the house they owe 200K on is only worth 125K now if they try to sell and buy another house. So, since they can't eat the 75K difference, they stay in the house instead of buying another one.[/quote]

....At least they aren't deciding to up and quit on the mortgage.


If they do, while some are buying another house and then walking away, most end up losing the house, ruining their credit and then renting.
Link Posted: 3/16/2011 4:14:44 PM EST
Originally Posted By fxntime:
Originally Posted By Easy_E:
Originally Posted By Waldo:


It's a little deeper than just no jobs. Many people that are working, have good jobs, and might want to buy a new home can't because they are upside down on their current mortgages. They're stuck.


I don't understand how a couple that has the same jobs , same pay and same mortgage instantly are upside down in their mortgage when times get bad ? Are they looking at property values and starting to get buyers remorse ?


Because the house they owe 200K on is only worth 125K now if they try to sell and buy another house. So, since they can't eat the 75K difference, they stay in the house instead of buying another one.


Looking at our house it went up 85,000 in value in the boom then went down 56000 in value roughly were it is now. Other than paying taxes on the higher value nothing has changed. The wife and my pay has stayed the same and the payments went up a little because of taxes .
Our house is worth less but we still make the payment every month ? Selling the house like you said would be a problem .
Link Posted: 3/16/2011 4:18:31 PM EST
Originally Posted By fxntime:
Originally Posted By Easy_E:
Originally Posted By Waldo:
It's a little deeper than just no jobs. Many people that are working, have good jobs, and might want to buy a new home can't because they are upside down on their current mortgages. They're stuck.


I don't understand how a couple that has the same jobs , same pay and same mortgage instantly are upside down in their mortgage when times get bad ? Are they looking at property values and starting to get buyers remorse ?


Because the house they owe 200K on is only worth 125K now if they try to sell and buy another house. So, since they can't eat the 75K difference, they stay in the house instead of buying another one.


Yup, and things get worse with layoffs.

If we assume that someone has six months of expenses saved up, if they're offered a job in another state, they may not be able to accept since they can't afford the 75k difference.
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