Posts tagged "upside down"
California’s Next Mortgage Crisis
With California being particularly hard hit by falling home prices (a 26% drop in February compared to the previous year), Slate suggests the next wave will be prime borrowers simply walking away from mortgages that no longer make financial sense.
Lenders had no reservations about selling borrowers loans with rising payments that would be poisonous in a rising market. Now it seems borrowers have no reservations about leaving those lenders with the risks they begged to take.
You can read the full article here.
The Upside Down American Dream
The drop in real estate prices has left many Americans upside down — meaning they owe more on their mortgage than what their home is worth.
Morgan at blownmortgage.com observes that some of these people have no problem making their payments, but are wondering if they should just walk away anyway. He says that for some, The American dream is no longer home ownership; It’s getting out of their home.
Are you upside down? What do you think? Add your comments at the end of this post.
