Tag

Underwater homeowner

“Flipping,” “Flopping” & Strategic Default

Old Wine in New Bottles  Thanks to a rising housing market, there are now far fewer underwater homeowners. However, they’ve hardly disappeared. In fact, something like 20% of all homeowners with a mortgage — about 5 million people nationally — still owe more on their homes than their home is worth (that’s down from closer to...
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Kicking Underwater Homeowners When They’re Down

Expired:  Mortgage Debt Relief Act Metaphorically speaking, if someone takes their foot off your throat . . . are you better off? I suppose. But, I wouldn’t say that you’re well off — just that your pain has been relieved.* What’s the distinction? Up until last year (2012 in Minnesota), homeowners whose mortgage was reduced in...
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Greedy? Stubborn? Try, “Drowning in Debt”

When you see an overpriced home languishing on the market at the same price, seemingly forever, it’s tempting to think the home owner is greedy, stubborn — or both. The more sympathetic (and likely) explanation? The homeowner/would-be Seller is drowning in debt. Not Underwater . . . But Lapping at their Feet Specifically, the amount...
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“Reverse Referral Fee”

“Pro Bono” Real Estate Agency? Not on Purpose Normally, when Realtor A refers a client to Realtor B, “B” pays “A” a referral fee. While Realtor B is going to be doing all the work, “A” has the client relationship — and can effectively decide which Realtor gets the gig. Depending on the situation and...
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If the Gov’t. Treated Housing the Same Way it Treated Wall Street . . .

Double-Standard?  And How!  If the U.S. government handled the housing crisis the same way it treated Wall Street after the 2008 financial crash (emphasis on “treat”), here’s what would have happened: 1. It would long ago have purchased — at inflated cost(!) — the homes of every underwater homeowner in the country; 2. It would then...
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Latest Gov’t. Refinancing Push: “It Doesn’t Look Like They’ve Done Anything Big Here”

More Hot Air From the White House Is the White House finally getting serious about helping underwater homeowners refinance their mortgages? Not judging by the bond market. Yesterday, mortgage-backed securities issued by Fannie Mae and Freddie Mac jumped in price. Given how refinancing affects these bonds — borrowers who re-finance pay off their expensive loans, reducing investors’ return —...
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