60 Minutes: House of Cards

[Eugene]

how many distressed non-recourse loans are out there?

In 2005 and 2006 San Diegans bought around 100,000 houses and condos. 25-30% of those had no equity in their houses to begin with (zero down). Every single one of these is distressed and non-recourse.

The remaining buyers (mostly move-up buyers) made some real down-payments. These will start to shake out if their neighborhoods correct by 20-30% or more.

[ltokuda]

esmith, thanks for the info. Those are some alarming numbers.

[ltokuda]

esmith, thanks for the info. Those are some alarming numbers.

[ltokuda]

esmith, thanks for the info. Those are some alarming numbers.

[ltokuda]

esmith, thanks for the info. Those are some alarming numbers.

[ltokuda]

esmith, thanks for the info. Those are some alarming numbers.

[GoUSC]

Was anyone else blown away by the woman (who talked about foreclosing because they were underwater in their mortgage) responded to the commentators question about being in a contract and honoring that contract with, “Yea but only if the home is going up in value.”

Un-freaking-believable.

Edit. Here is the actually conversation:

Matt: The value of the house keeps going down and the payments keep going up. Where’s the logic in that?

Stephanie: Why make a $3200 a month payment on a 1200 square foot home? It makes no sense.

Steve Kroft: But that’s what you agreed to do when you bought the house.

Stephanie: Fine if the value was going up. The value is going down.

Steve Kroft: You are saying essentially you are going to stop making payments.

Stephanie: The only advice we’ve gotten so far is to walk away.

[GoUSC]

Was anyone else blown away by the woman (who talked about foreclosing because they were underwater in their mortgage) responded to the commentators question about being in a contract and honoring that contract with, “Yea but only if the home is going up in value.”

Un-freaking-believable.

Edit. Here is the actually conversation:

Matt: The value of the house keeps going down and the payments keep going up. Where’s the logic in that?

Stephanie: Why make a $3200 a month payment on a 1200 square foot home? It makes no sense.

Steve Kroft: But that’s what you agreed to do when you bought the house.

Stephanie: Fine if the value was going up. The value is going down.

Steve Kroft: You are saying essentially you are going to stop making payments.

Stephanie: The only advice we’ve gotten so far is to walk away.

[GoUSC]

Was anyone else blown away by the woman (who talked about foreclosing because they were underwater in their mortgage) responded to the commentators question about being in a contract and honoring that contract with, “Yea but only if the home is going up in value.”

Un-freaking-believable.

Edit. Here is the actually conversation:

Matt: The value of the house keeps going down and the payments keep going up. Where’s the logic in that?

Stephanie: Why make a $3200 a month payment on a 1200 square foot home? It makes no sense.

Steve Kroft: But that’s what you agreed to do when you bought the house.

Stephanie: Fine if the value was going up. The value is going down.

Steve Kroft: You are saying essentially you are going to stop making payments.

Stephanie: The only advice we’ve gotten so far is to walk away.

[GoUSC]

Was anyone else blown away by the woman (who talked about foreclosing because they were underwater in their mortgage) responded to the commentators question about being in a contract and honoring that contract with, “Yea but only if the home is going up in value.”

Un-freaking-believable.

Edit. Here is the actually conversation:

Matt: The value of the house keeps going down and the payments keep going up. Where’s the logic in that?

Stephanie: Why make a $3200 a month payment on a 1200 square foot home? It makes no sense.

Steve Kroft: But that’s what you agreed to do when you bought the house.

Stephanie: Fine if the value was going up. The value is going down.

Steve Kroft: You are saying essentially you are going to stop making payments.

Stephanie: The only advice we’ve gotten so far is to walk away.

[GoUSC]

Was anyone else blown away by the woman (who talked about foreclosing because they were underwater in their mortgage) responded to the commentators question about being in a contract and honoring that contract with, “Yea but only if the home is going up in value.”

Un-freaking-believable.

Edit. Here is the actually conversation:

Matt: The value of the house keeps going down and the payments keep going up. Where’s the logic in that?

Stephanie: Why make a $3200 a month payment on a 1200 square foot home? It makes no sense.

Steve Kroft: But that’s what you agreed to do when you bought the house.

Stephanie: Fine if the value was going up. The value is going down.

Steve Kroft: You are saying essentially you are going to stop making payments.

Stephanie: The only advice we’ve gotten so far is to walk away.

[Coronita]

This video reminds me of every single newspaper and tv documentary on housing during the 90ies that i watched. I recall people in areas like Lancaster getting screwed, and folks that were knife catchers buying foreclosures themselves getting foreclosed 1-2 years out. it's eerie how history repeats itself in so many ways.

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

This video reminds me of every single newspaper and tv documentary on housing during the 90ies that i watched. I recall people in areas like Lancaster getting screwed, and folks that were knife catchers buying foreclosures themselves getting foreclosed 1-2 years out. it's eerie how history repeats itself in so many ways.

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

This video reminds me of every single newspaper and tv documentary on housing during the 90ies that i watched. I recall people in areas like Lancaster getting screwed, and folks that were knife catchers buying foreclosures themselves getting foreclosed 1-2 years out. it's eerie how history repeats itself in so many ways.

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

This video reminds me of every single newspaper and tv documentary on housing during the 90ies that i watched. I recall people in areas like Lancaster getting screwed, and folks that were knife catchers buying foreclosures themselves getting foreclosed 1-2 years out. it's eerie how history repeats itself in so many ways.

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Author]

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