@Anonymous wrote:
Hi Folks,
Here's a slightly different twist on an article that scamp
posted yesterday concerning homeowners who owe more
money than their properties are worth.
People who have found jobs in other areas have had to decline
the offers because they can't sell their homes. Some folks did manage
to find work in their area, while others are seriously contemplating
walking away from their situation.
The link can be found below. I'd be curious to hear how everyone
feels about this growing concern....
http://www.usatoday.com/money/economy/housing/2008-12-18-under-water-late-mortgage_N.htm
CanDo
"The right attitude is everything"
Pretty grim for a lot of people, ufortunately, and as the article notes:
In fact, the greatest drop in home prices, in many cases, is in areas with the sharpest rise in unemployment.
Those areas face a terrible set of feedback loops. Depressed economy means people are desperate to sell, pushing housing prices down. Declining housing values make the economy worse, pushing more people into unemployment. Declining economy means local government is strapped, further harming economy and housing prices. Things are probably gonna get worse before they get better in many places.
Also, whenever the economy does pull out of its current deflationary spiral we're probably due for a period of high inflation, because all that money being sprayed around right now in an effort to prevent another Great Depression is likely to create tremendous inflationary pressure once the slump bottoms out. That risk is a price worth paying to prevent another Great Depression, but there will be a hefty price to pay in the form of lowered expectations going forward.
TU 791 02/11/2013, EQ 800 1/29/2011 , EX Plus FAKO 812, EX Vantage Score 955 3/19/2010 wife's EQ 9/23/2009 803
EX always was my highest when we could pull all three
Always remember: big print giveth, small print taketh away
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