Millions of U.S. homeowners who bought homes with sinking value are set to abandon the properties and cut their losses on bad investments, a leading housing market economist said on Tuesday.“We may face something unprecedented … that is a situation where millions of homeowners are going to walk out of their homes in the next couple of years,” said Nouriel Roubini, professor of economics and international business at New York University’s Stern School of Business and head of Roubini Global Economics.
Somewhere between 10 million and 15 million homeowners might soon find that their homes are worth less than the amount of their loans, Roubini said at the Reuters Housing Summit in New York.
Such borrowers would be caught in a trap of “negative equity,” in which they are paying off loans that no longer represent the true value of their properties.
“When the value of your home is below the value of your mortgage, you have a huge incentive essentially to walk away,” he said.
Read the rest of the Reuters story here
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At the end of the day, people can talk about fiscal responsibility and personal integrity all they want.
If people decide in droves that paying on a property that’s not worth what their mortgage note says it does is not a good financial decision and those people walk away . . .
We’re all screwed!
So in who’s best interest is it to make sure that this DOESN’T HAPPEN?
I say we start on the top of the food chain first and work our way down.
Moe:
Did you really write this or was it a post from someone else? I am used to seeing this type of rant from posts in response to an article open for discussion but not as an article itself…maybe you are just trying to poke a porcupine?
yawn, more of the same name calling. been there and done that. let’s get to something more worth while than this idiotic tirade.
Hey Moe, do you read the crap you peddle over at MHL Pro?
moe,
thanks for telling it as it is. not too many people feel the same way most specially those who live their lives from destroying other peoples dreams.
more power to you