Progeny of “Trickle Down Economics” Want today’s housing market — at least in many locales — in a (sober) nutshell? Here it is: Home Sellers now divide into two groups: those with equity, who can afford to sell; and those who are underwater, and can’t. The ones who can afford to sell, are — but...Read More
“Can’t Sell” vs. “Won’t Sell” Much attention has been paid to all the homeowners who want to sell now but literally can’t afford to, because they owe more on their mortgage than their home is worth (in Realtor’s parlance, they’re “underwater”). Unless they can get the bank(s) to reduce their principal or simply default, they...Read More
Two Types of Housing Distress The key to understanding [the administration’s housing] plan will be remembering that there are two different groups of homeowners who are at risk of foreclosure. The first group is made up of people who cannot afford their mortgages and have fallen behind on their monthly payments . . . The...Read More
“‘Underwater’ Need Not Mean Foreclosure” That’s the title of a nice article in today’s Wall Street Journal. The article’s author makes the point — which I have observed — that most people who owe more than their home is worth keep making payments, regardless. Assuming they can. According to the article, the two biggest factors...Read More
