“Defaulting middle-class U.S. homeowners are blamed…”
May 14th, 2008 Categories: Mortgage and Loans, Real Estate News, Real Estate Trends, Sacramento Real Estate, Shortsales
This is kind of getting scarier and scarier… The more I learn bout the mortgage meltdown, the credit crunch, the sub prime debacle, the more I realize just how big our problems may be.
Found a great link today…”Defaulting middle-class U.S. homeowners are blamed, but they are merely a pawn in the game…” You see, just as housing had a crazy bubble, so did the credit markets, borrowed money was used as collateral to borrow more money, that went out in the market, bought assets that went up in value and multiplied; feeding more borrowing…
Here’s how it worked: It was just a larger version of the basic real estate market dynamics that were at work here in Sacramento… crazy to think emotions and exhuberance play such a huge part of even our global markets.
Who’s to blame? I’m not sure. Jury is still out on that… there were so many different factors, so many different players, I guess we are all to blame; except for the poor souls who were priced out or who were smart enough to realize that the crash just had to come…
From my perspective there is plenty of blame to go around. Thanks for posting.
Mahalo,
Keahi Pelayo
RE/MAX 808 Realty
From my perspective there is plenty of blame to go around. Thanks for posting.
Mahalo,
Keahi Pelayo
RE/MAX 808 Realty
Forth,
Living here in the shadow of the nation’s capital as I do, you can imagine the daily barrage of information we get about who is to blame – and there is always somebody isn’t there?
But there are some optimistic statistics:
* There are 120 million homeowners in the United States.
* Of that 120 million, one third are owned free and clear with no mortgage.
* One half of the remaining 80 million homes were bought before 2000 and still enjoy a 34% increase in median home prices.
* 95% of all homeowner pay their mortgage on time.
I know CA is taking a particularly hard hit. Thanks for continuing to post pertinent information.
Michael
GWSleptHere.com
Forth,
Living here in the shadow of the nation’s capital as I do, you can imagine the daily barrage of information we get about who is to blame – and there is always somebody isn’t there?
But there are some optimistic statistics:
* There are 120 million homeowners in the United States.
* Of that 120 million, one third are owned free and clear with no mortgage.
* One half of the remaining 80 million homes were bought before 2000 and still enjoy a 34% increase in median home prices.
* 95% of all homeowner pay their mortgage on time.
I know CA is taking a particularly hard hit. Thanks for continuing to post pertinent information.
Michael
GWSleptHere.com