Have you heard your family discussing what the recession has done to the value of their home? Read this article to see what predictions are ahead of us. What do you think of this?
Friday, August 21, 2009
What Is Your Home Worth? And Tomorrow?
Have you heard your family discussing what the recession has done to the value of their home? Read this article to see what predictions are ahead of us. What do you think of this?
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Now, I can't help but criticize this article. When talking about homeowners whose mortgages are "underwater," one has to take into consideration that unless these homeowners plan to sell or otherwise change the home situation, the "underwater" status is merely a statistic figure and effects the economy in no way.
Yet, for those trying to sell and downsize to a cheaper home, perhaps the best remedy is to stay right where they are until it is financially worth it for them to do so.
I know a family trying to sell their home but since no one can afford to by homes, their house is not selling. Forcing them to drop the price of their home. This is def. not a good thing.
Homes payments are starting to get worse. So far a lot of people are losing homes because they cann't pay. But things can get better. Some people have not yet seem to be affected by this so things can get can get better or worse for them and only better for who already lost there homes.
I agree that unless you are trying to sell your home you are not technically "underwater". In my opinion, unless you absolutely need to get out of your housing situation and there is no other option, the best thing would to just stay put until the housing market is back up to where it should be.
That is a lot of homes to be foreclosed. It so unfortunate that homes and peoples places of protection are being affected by the recession. I couldn't imagine my home going into foreclosure. It scares me to think that it could happen. It makes me want to just live in an apartment when i grow up.
Hearing that by 2011 25 million homeowners can be "underwater" is a startling statistic to me. People already are struggling as it is in the economy today and lacking the house payments and losing their home can make it even worse. However, I know that my family just refinanced the house and locked in at a low rate while they were still down. This does mean we have to live here longer but in doing so we saved a lot more money than what we were paying. Homeowners just have to be smart with their money and find their priorities during these tough times.
I do believe that the recession has had a big effect on people trying to sell their homes, and I do agree that unless you are in a desperate situation you should stay put in your household.
With foreclosures occurring left and right, it's hard to feel secure. So many people are "underwater" and have had trouble making their payments. I would hate to be directly affected by this problem. It is almost impossible to sell a house for what it is really worth these days. It is definitely a buyer's market and not a seller's market. Many seller's are more willing now to decrease their asking price just so they can find someone who will buy it.
So I think that people should do everything they can to keep their house. Since the prices in houses have dropped that would be like really bad. Houses won't sell for anything now so everyone needs to be patient and wait for the recession to end.
The information in this article is definitely startling, especially since many economists are saying that the recession is over. Im not sure if I agree with this article because if the economists are right, then the economy should be great by 2011, and therefore there would not be 48% of mortgages "underwater" because more people would want to buy houses.
It is really terrible how the housing market is right now. So many people behind or have even lost their homes. It is very scary to think that 48% of all home owners by 2011 will be behind on payments or even in foreclosure.
This article hits pretty close to home (literally) recently with increased forslosure rates in the past few years it has actually been a good thing in our family because we have bought 8 houses that were going into forclosure. We fix up the house with whatever it needs and then we either rent or sell the house depending on what offers we get. This helps my parent with thier retirement plan as well, the houses basically pay for themselves
Many people with mortgages don't even understand why the pay what they pay each month. Many people decide to pay the lowest amount of money monthly on their mortgage as possible thinking they will save money, but actually they will always be paying intrest, especially if the intrest rate on their house was high when they got the mortgage. A lot of people think that if they pay the lowest amount of money as possible per month then they can afford a bigger and nicer home. This is what can cause people to be in debt and loose their homes, along with an unexpected loss in money, such as loosing a job.
Honestly I have just started to ignore a lot of the things like this that come from the news. To me it always seems like they are predicting imminent doom and when it doesn't happen they go "Whew we got lucky and dodged a bullet there." or something like that. If things were as they say in this I would think that people would be getting kicked out of their homes left and right but where I live I haven't seen a house go up for sale or people move out of their house even. However these could just be the observations of someone that doesn't know much about the economy or anything, but I guess thats why I'm taking an econ class.
The man I had In-Car with when I was in Driver's Ed was a real-estate agent. He told me that people are buying houses they don't need, as they're so cheap, and waiting for the market to go back up to sell them again. This being clever on their part, also effects the people that need to buy a house. There are several empty houses around the country by Middletown that are just sitting and waiting. This, I feel, brings the economy down greatly and assists in houses being worth much less than they should be.
I understand mortgages and how hard it has become. My family has filed bankruptcy mostly due to mortgage. I wouldn't say that we are "underwater" but I know many who are. I see from them and from experience that once you go under the water level, so to speak, it's close to impossible to come back to the surface.
My parents wanted to move to Tennessee recently but we weren't able to because we weren't able to sell our house. We had it appraised and then the real-estate agent told us what we should try to sell it for... Needless to say, my parents were not very excited about basically giving our house away. So, I'm still here in Ohio! :)
None, of my family members have been talking about how the recession has affected the value of their home, but while I was in Louisiana (for the summer) my sister's mortgage actually went down. I was a little bit shocked that it would go down at this time. Unfortunately, if the predictions become true then the 25 million mortgage holders could owe banks more than their homes are worth. Things would get much worse.
well i see it everyday people having forclosed homes cause they cant afford the payment on the mortgages or the car payments or anything like that people lose their houses cause they lose their jobs
These days homes are very cheap simply because nobidy can afford them. With all of the good paying jobs dropping people it's hard for people to pay the rents of their houses and even the morgages. So, people have to sell their homes for money and since everyone is struggling no homes are being sold. So people have to drop their prices for the houses to be sold.
This article is quite scary honestly. I mean to have 14 million people owing more money than their house is worth is a very big deal. And its still growing. Foreclosers are a horrible situation. When it comes to the people "underwater" they can't help it. Its just the fact that the house part of the economy isn't doing so well.
well, here in the united states we dont have a house
we live in a movil house.
my parents been trying to buy a house
we think houses are really cheap
but my parents say that still the money we pay
the house will worth way less then what we might pay.
hispanics and latino's have the chance to get a house with a low rate of interes if we borrow the money from goverment thanks to obama or we can also borrow it for a bussines and still get a low interest i think
its a great oportunit
but i dont believe in it.
This article is quite scary to me . To have this many people owing more money than their own house it worth is def. not a good thing. And the problem is still getting bigger.It is just a downside of capitalism.
I remember back in 2006 my family was trying to sell our house in a very nice upscale suburban neighborhood. And back then, people could not afford to buy our house. We had to lower our price many, many times. I remember how hard that was on my family making two house payments for 1+ years. That was back before the recession really started. Now i cant even imagine how hard it is.
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