Falling home prices drag new buyers under water

More than 1 million Americans who have taken out mortgages in the past two years now owe more on their loans than their homes are worth, and Federal Housing Administration loans that require only a tiny down payment are partly to blame.

4 comments on “Falling home prices drag new buyers under water
  1. kdt says:

    yes and that exposes the FACT that 2008 was just the start, and the curent invantory of forclosures are not the end, these people will be eather walking away or forclosed on soon this is going to continue in a cycle untill the banks eat the losses THEY caused

  2. JonnyJames says:

    The article is rather optimistic actually. It does not mention the million-plus properties already in the foreclosure pipeline. Sources in the article claim that the market will rebound next year. I am willing to bet quite a stack of paper (and even metal) that it will not.

    The only markets that are seeing modest price rises are the ultra-wealthy areas of San Francisco, Silicon Valley and Marin County in Cal and Manhattan in NYC and a few other pockets of the top .01% of properties. This reflects the “reverse Robin Hood” effect of the kleptocratic Mafia State.

  3. Long John Silver says:

    Some people have yet to awaken to a PARADIGM SHIFT that has happened in American real estate. Most everyone that works for a living understands they can no longer depend on that job lasting for life. They must be mobile. Buying a house today anchors you to it with no guarantee that you could sell it much less make any money on it when the time comes when you MUST MOVE. Today’s worker is mobile and so rents the house or apartment he/she lives in so they can move when their current job ends or they find another better paying job somewhere else. The days of loyalty to an employer is gone. Real Estate investment for profit is also gone, and it’s never coming back. The only people that cam profit in Real Estate are people that own rental property.

  4. Bruce says:

    Manny Bongiovanni, a mortgage broker in Phoenix, who has processed mainly FHA-backed loans in recent years, said most such loans were issued at a 30-year, fixed low interest rate.
    ~~~~~~~~~~~~~~~~
    30 years. My god.

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