San Diego Homeowners with Underwater Loans
People might have got into these loans without thinking too hard but I guarantee you that they won't leave as foolishly. You don't need to be Robert Shiller to understand that your housing equity is not coming back any time soon and that rents are becoming ever more affordable.
Besides… who needs a credit score in the next 4 years anyway? Many people approaching 800 on their FICO are still being denied new credit card offers and have no desire to purchase any real estate until the dust settles.
Many strongly believe that underwater homeowners should walk away en masse unless their true desire is to stay put for the next 15 to 20 years. Rip the band-aid off!!! San Diego Realtor
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7 Comments
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What were the government regulators doing while banks and mortgage brokers were issuing these subprime loans?
San Diego Legal Advice
There was so much speculation in the San Diego real estate market, what we’re seeing now seemed inevitable.
San Francisco Family Lawyer
Real estate speculators should not be bailed out by the government.
San Diego Vacations
The only way to pay that off is massive inflation– 10-15% every year for 6-8 years. Worst part is the next President will take the fall for Greed the scope of which the world has never seen. So hold on to that house if you can, in a few years it will be worth three times its present value and that mortgage you can’t afford will represent a year’s salary.
Houston Legal Services
Why always blame somebody else? What happened to self responsibility and self accountability? If you cannot afford the house payments then don’t buy a house. If you cannot qualify for a fixed-rate 30-year loan, then that means you are not qualified! It’s your responsibility to know how much you can afford. It’s as simple as that.
San Diego Lasik Surgeon
If the homeowner just walks away, there is ZERO penalty. Bush recently nixed the 1099 for the forgiven debt so there is no financial penalty for just sending the keys back to the bank. That is the rational choice. Credit score is non-issue since they can just buy back into the housing market in a few years when housing is actually affordable in terms of absolute PRICE vs. the seductive “affordability products” that lenders were hustling. Lower housing prices are good for the nation since they allow the nation’s capital to flow into productive assets (like small businesses) instead of the perpetually trading of houses back and forth at ever increasing prices with no mooring to economic fundamentals (i.e., the recent housing bubble).
San Diego Real Estate Sales
THIS IS ABSOLUTELY ABSURD that we are going to bail out homeowners who WILLINGLY and GREEDILY bought a house they couldn’t afford. I bought a $1M house and knew I was in over my head! So, I fortunately sold it before the market tanked. What really stinks is that people who CAN afford their mortgage payments are skipping them so they have more vacation money before they pack up and move to a rental.
San Diego Real Estate Investor