HowardYour House, Your Prison
February 28th 2008 13:38
Real Crash- Looking at Capitalism and its Laws:
Sheryl Crow, Santa Monica Boulevard
All I want to do is have some fun;;
But now the home crash seems to have just begun;
All I want to do is have some fun;
Until my equity crashes over Santa Monica Boulevard;
(spoof Sheryl Crow- Santa Monica Boulevard)
Many homeowners are being put into the equivalent of "debtors prison" and are not having too much fun. This refers to the many homeowners who are managing to continue to pay their mortgage and not get evicted. Their problem is they can't sell their houses either, and they owe more money on the mortgage than what the house is worth.
Existing home sales have dropped by a large amount, and the median sale price is down 15-percent from two years ago, averaged across the nation. Detailed statistics on this have been issued by the Commerce Department. The result is that an estimated 10 million homeowners have joined the "negative equity" club. If they move they are liable to pay the difference between the sale price and the higher mortgage in Cold Cash.
Already in parts of California, Florida and Virginia, among other places, house prices have dropped by 20-percent or more, and soon 15 million American families will be caught in this debt trap. Was that a foreseen consequence of the last five years of easy mortgages? The adjustable rate mortgages and so on, were crucial to build up home prices to huge heights, from which they are now falling.
Pix at ecorazzi.com
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