home price depreciation leading cause of mortgage default 1

catherine at 00:53 2009-04-15 said:

this is as eye-opening as "eating less causes weight loss"

HOUSE DEPRECIATION HAS ALWAYS BEEN THE CAUSE OF MORTGAGE FORECLOSURES

I have been disgusted with all the blame for the originators and anyone else that touched a mortgage as the reason for this disaster!

Overbuilding caused too much supply and too much supply caused values to fall

Those dumb people that the media loved to talk about that bought over their heads WOULD HAVE LOVED TO HAVE SOLD THEIR HOMES FOR BREAK EVEN TO SAVE THEIR CREDIT INSTEAD OF WALKING AWAY

but noooooooooooooooooooooooo the media knew better, shoddy loans, crooked mortgage people, liars, greed, blah blah blah,

and long after we have wasted 100 TRILLION taxpayer dollars

we will see that it was all just a supply and demand (depreciation) problem........... Permalink

Jess Badlybent at 20:20 2009-04-15 said:

Let me add: The author of this article wants us to believe that this is some new insight into the foreclosure epidemic. Even this, amazing revelation from the Boston Fed, has not influenced his/her skewed opinion of the causes: (quote) "Of course, I don’t know if these proposals would actually offset the fact that a home is no longer viewed as an investment, which seems to be why many borrowers are throwing in the towel." Come on idiot! Do you even think about what you are saying? We don't want homes to be viewed as investment vehicles. After all, how fiscally intelligent is it to retain a non-performing investment? That has been much of the misconception that, created the "bubble" and, has lead us to this tragedy. If the world shared the author's viewpoint, most would walk away from their home right now! While a home may appreciate in value and provide long-term financial reward, short-term, it is not an investment in anything other than quality of life.

What can be taken from this article is that homeowners/consumers are waking up and realizing that their future quality of life will be negatively affected by loan modifications that only offer temporary relief while saddling them with greater debt for longer periods of time. If it is more economically advantageous for banks to foreclose then get on with it. If banks stand to gain more by writing down loans, and rewriting existing contracts, then get on with it. Once a homeowner feels defeated and begins to feel the walls closing in on them it is probably too late to do anything. They have already admitted defeat, are indifferent, and have begun to consider bankruptcy or other alternatives. By then they are just living rent-free until they receive a knock on the door and all that is have left is a lose-lose situation.

I may be beat down but............brother, I'm not broke.

I'm Jess Badlybent. Permalink