Tag Archives: negative equity

The New Obama Plan To Refinance Mortgages

President Obama Thursday night announced a plan to expand access to mortgage refinance. Why would government intervention be needed here? Because the private sector has no incentive to refinance mortgages on homes that have negative equity. So we get more … Continue reading

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Sacramento Flooded By Underwater Homes

I lived in the Auburn area (45 minutes drive north of Sacramento) for most of 1980-1993. I remember talking one day to a journalist who wanted to quit the Sacramento Bee and write books full-time. He was investigating writing a … Continue reading

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The Bipolar Housing Market

I remember one summer day in 1980, my parents and I visited the U.S. House of Representatives. A big fat man, Tip O’Neill, the speaker of the house, was getting into a limousine as we were walking up. “Good evening, … Continue reading

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10.8 Million American Homes Are Underwater

The problem is worst in Florida and the West (California, Nevada, Arizona). But hurray, the number of underwater homes has decreased from 11 million. The number has improved throughout 2011. But this good news is coming to a halt. There … Continue reading

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Number Of Underwater Homes Falls For Third Straight Quarter

A home is underwater when the owner owes more on it than the place is worth. About 22.5% of all homes are underwater, which is more than four times the normal amount. So it is hard to rejoice too much … Continue reading

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Avoiding The Strategic Default

About eleven million American families are underwater on their mortgages. They owe more on their homes than they are worth. Much of the time, it would make sense for these families to walk away from their mortgages. This would increase … Continue reading

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When To Give Up Your Home To The Bank

Tens of thousands of people remain in homes that are underwater, that is, their mortgage is more than their home is worth. They’re drowning. Yet they stay. Why? It depends on how much people owe versus how much the home … Continue reading

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One In Five Homeowners Helped By Obama Mortgage Modification Scheme

Lenders, politicians and homeowners are eager to avoid a flood of new foreclosures which would drive down home prices, leading to reduced equity and more foreclosures. It’s a vicious cycle. After a slow start, Obama’s mortgage modification scheme has helped … Continue reading

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A Third Of Mortgages Are Under Water

That means owners owe more on their homes than they are worth. The nation’s average loan-to-value ratio is 78 percent. Which three states are the most under water? California, at $969 billion, then Florida, $432 billion, and New Jersey, $146 … Continue reading

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Defaults To Rise With Unemployment

Increasing foreclosures mean lower home prices which lead to more foreclosures. It is a vicious circle. The housing market is not expected to turn around for two years. We’re hitting bottom now, say many experts. Report: Pennsylvania and New Jersey … Continue reading

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