How many upside-down Americans will walk away?

[mydogsarelazy]

Here is something from the New York Times:

“The financial blog Calculated Risk, using data from First American CoreLogic, estimates that if home prices fall 20 percent there will be 13.7 million homeowners with negative equity. If prices fall 30 percent, that number would rise to more than 20 million.”

How many of those upside-down Americans are going to walk away from their homes, and how long will it take them to do it? It doesn’t seem unlikely to me that over the next three to five years ten million Americans will leave behind their homes and mortgage responsibilities.

JS

[barnaby33]

This isn’t really a question about the number, its a question about the consequences.
Josh

[barnaby33]

This isn’t really a question about the number, its a question about the consequences.
Josh

[barnaby33]

This isn’t really a question about the number, its a question about the consequences.
Josh

[barnaby33]

This isn’t really a question about the number, its a question about the consequences.
Josh

[barnaby33]

This isn’t really a question about the number, its a question about the consequences.
Josh

[Arraya]

It is unfortunate that the interests of the indvidual and the financial institution are so opposed.

Does anybody else think that the BK law changed back in 05 was good timing for the banks or what?

[Arraya]

It is unfortunate that the interests of the indvidual and the financial institution are so opposed.

Does anybody else think that the BK law changed back in 05 was good timing for the banks or what?

[Arraya]

It is unfortunate that the interests of the indvidual and the financial institution are so opposed.

Does anybody else think that the BK law changed back in 05 was good timing for the banks or what?

[Arraya]

It is unfortunate that the interests of the indvidual and the financial institution are so opposed.

Does anybody else think that the BK law changed back in 05 was good timing for the banks or what?

[Arraya]

It is unfortunate that the interests of the indvidual and the financial institution are so opposed.

Does anybody else think that the BK law changed back in 05 was good timing for the banks or what?

[patientlywaiting]

“Does anybody else think that the BK law changed back in 05 was good timing for the banks or what?”
———–

Bad timing for the banks because the new law encourages people decide to walk from their mortgages rather than their credit card debts (which can no longer be discharged).

Underwriting is now upside-down where mortgages are riskier than credit card loans. Big problem for the banks is that mortgages pay low interest rates but have high risks. It’ll take the banks a few years to rethink their business models.

[patientlywaiting]

“Does anybody else think that the BK law changed back in 05 was good timing for the banks or what?”
———–

Bad timing for the banks because the new law encourages people decide to walk from their mortgages rather than their credit card debts (which can no longer be discharged).

Underwriting is now upside-down where mortgages are riskier than credit card loans. Big problem for the banks is that mortgages pay low interest rates but have high risks. It’ll take the banks a few years to rethink their business models.

[patientlywaiting]

“Does anybody else think that the BK law changed back in 05 was good timing for the banks or what?”
———–

Bad timing for the banks because the new law encourages people decide to walk from their mortgages rather than their credit card debts (which can no longer be discharged).

Underwriting is now upside-down where mortgages are riskier than credit card loans. Big problem for the banks is that mortgages pay low interest rates but have high risks. It’ll take the banks a few years to rethink their business models.

[patientlywaiting]

“Does anybody else think that the BK law changed back in 05 was good timing for the banks or what?”
———–

Bad timing for the banks because the new law encourages people decide to walk from their mortgages rather than their credit card debts (which can no longer be discharged).

Underwriting is now upside-down where mortgages are riskier than credit card loans. Big problem for the banks is that mortgages pay low interest rates but have high risks. It’ll take the banks a few years to rethink their business models.

[Author]

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