Relevant:
- Homeowner's House Sold In Foreclosure Even Though She Was Current On Her Mortgage
- Citi Tries Pilot "Rent-in-Lieu" Program
- Obstacles You May Face When Trying to Refinance to Today’s Low Mortgage Rates
- Past foreclosure means waiting years for new loan
- Sub-Prime Mortgage Crisis Has Spilled Over into Home Equity Loans and Lines
2009-02-04 — ml-implode.com
"If a homeowner has a mortgage on his house, does he really “own†the house? Well, sort of. What he “owns†is the equity in the home over and above what he owes on the mortgage. If the home is “worth†$500,000 on the market, and the homeowner still owes $400,000 on the mortgage, then he owns the incremental $100,000 of equity."
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Comments:
candleinthewind at 02:06 2009-02-05 said:
"Mirage" is the perfect word mentioned in this article. The trend in this area is a "homeowner", negative equity or not are seeing thier neighbors go into foreclosure but staying in the home for six months to twenty-four months and longer. The homeowner that has paid their mortgage on time and watching thier home's value plummet is now putting thier mortgage payment that they would normally send to the bank, into an interest bearing account. If the mortgage payment is: $3,000, and after two years, they have $72,000 in the account earning interest. If and when the homeowner is actually evicted and has to go rent, they still have a nest egg in the bank. Then they go through credit repair and get back in good standing after six months, they have $72,000 plus interest in thier pocket. So, equity in the home is a "Mirage"; cash money in the bank is not. Permalinkadd a comment | go to forum thread
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