The latest report is that 23% (over one in five, closer to one in four) mortgages are larger than the property is worth! The term is being under water. Owing more than the value.
That is astounding. Those homeowners have lost any $ they put down or equity they had grown in their American dream.
A friend of a friend closed and moved into a house near Labor Day. They have not sold their other house and have lowered the price two times in the last six months. They are making two house payments a month. Ouch.
They have decided to refinance the new house. Already? It's just an effort to lower that payment. The bank is rolling the costs of another title search etc. into the new loan. They are short sighted but then I'm not making two house payments.
If you are one of the 4 in 5 or 3 in 4 that is not under water, remember to be thankful for that tomorrow.
'til later
Bargain Barb
- Bargain Barb
- Naperville, Illinois
- Greetings! I have years, no decades, of financial experiences to share. I have a passion for education. I am a control freak in that I need to know where my $ goes. I continually ask myself do we need that, what risks are we taking with that investment, how/when can we get at our $, and just how much does Uncle Sam demand of our every earned $. Stay tuned to my life choices now and my references to life choices/experiences from my past.
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