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Monday, May 18, 2009

Underwater



One in every five homeowners is now underwater. This is a primary reason for the foreclosure rate. What's the point of hanging around in the house if walking away from it is a financial benefit at least in the short run. Staying in the house would be a long term bet that the local market improves and the recession leads into a visibly churning and moving economy. Its damned if you do, damned if you don't.

Yahoo: House-Price Drops Leave More Underwater
...about 20% of U.S. homeowners owing more on a mortgage than their homes are worth...

More than one in 10 borrowers with a mortgage owed 110% or more of their home's value at the end of last year...

2 comments:

Glynn Kalara said...

Here's a BIG reason why we are not coming out of this Recession/Depression any time soon. It really irks me that the same fucking banks that buried millions are getting bailed out by some of the same people they helped bury plus the rest of us that had nothing to do with the whole deal. I'd like to know how the people that got rich off this can sleep @ night? I know some of them and their attitude is so what? This is what America has become. Predators and Prey.

Jim Sande said...

I think this all works out well because of an inherent racism and classism in America.

Basically the Republican traction on it is this - if you were stupid enough to sign the dotted line on a variable rate mortgage and you didn't have enough income to buy the house in the first place, then tough shit.

The Democrats seem to be going along with this because they are still spineless shits.

It also helps that a lot of foreclosures are happening to people of color. No need to amplify that...

So none of the shitheads who sold people on the unlimited housing bubble theory and the benefits of a variable rate mortgage are left behind. They all get the money and we can go fuck ourselves.