ue to the economy, owning a home you can’t afford anymore. Because people are being laid off and stock markets are down many people are finding that they can’t pay off their mortgages and having to refinance. Nevada has the largest number of “upside-down mortgages” in the country (55%) and Michigan right behind at 40%. At the end of the third quarter there were 18% of mortgages underwater. Home values have gone down significantly this past year making many people frustrated with owing the banks more than their property is worth. A couple of years ago Tucker Roberts bought a 500,000 dollar home hoping he could pay it off with time and use his house as a bank. Back then, his plan seemed promising because the value of a home was rising significantly. But now his home is only worth 150,000 dollars. As many are nowadays he is struggling to keep up with the mortgage payment. What hope is there for people similar to Roberts? U.S. Treasury Department program is planning on helping people like Roberts to offer cash incentives to home owners up to 729,750 dollars so that not too many homes are owned by banks. Some people are trying to increase their homes’ value by investing in hopes they can receive more money for what the home is truly worth. However, right now not many people are looking to buy a new home because of the economic trouble (unemployment rate is up and stock numbers are down) therefore raising the value of the home may have no effect to help sell their homes. Until we see a rising economy there is not much hope for people like Roberts.
Thursday, March 19, 2009
Homeowner Crisis
With house prices being at its lowest, it’s the best time to be looking for a new home. However, if you already own a home you might not be in the best of luck. This article is illustrates the issue that many people are facing d
ue to the economy, owning a home you can’t afford anymore. Because people are being laid off and stock markets are down many people are finding that they can’t pay off their mortgages and having to refinance. Nevada has the largest number of “upside-down mortgages” in the country (55%) and Michigan right behind at 40%. At the end of the third quarter there were 18% of mortgages underwater. Home values have gone down significantly this past year making many people frustrated with owing the banks more than their property is worth. A couple of years ago Tucker Roberts bought a 500,000 dollar home hoping he could pay it off with time and use his house as a bank. Back then, his plan seemed promising because the value of a home was rising significantly. But now his home is only worth 150,000 dollars. As many are nowadays he is struggling to keep up with the mortgage payment. What hope is there for people similar to Roberts? U.S. Treasury Department program is planning on helping people like Roberts to offer cash incentives to home owners up to 729,750 dollars so that not too many homes are owned by banks. Some people are trying to increase their homes’ value by investing in hopes they can receive more money for what the home is truly worth. However, right now not many people are looking to buy a new home because of the economic trouble (unemployment rate is up and stock numbers are down) therefore raising the value of the home may have no effect to help sell their homes. Until we see a rising economy there is not much hope for people like Roberts.
ue to the economy, owning a home you can’t afford anymore. Because people are being laid off and stock markets are down many people are finding that they can’t pay off their mortgages and having to refinance. Nevada has the largest number of “upside-down mortgages” in the country (55%) and Michigan right behind at 40%. At the end of the third quarter there were 18% of mortgages underwater. Home values have gone down significantly this past year making many people frustrated with owing the banks more than their property is worth. A couple of years ago Tucker Roberts bought a 500,000 dollar home hoping he could pay it off with time and use his house as a bank. Back then, his plan seemed promising because the value of a home was rising significantly. But now his home is only worth 150,000 dollars. As many are nowadays he is struggling to keep up with the mortgage payment. What hope is there for people similar to Roberts? U.S. Treasury Department program is planning on helping people like Roberts to offer cash incentives to home owners up to 729,750 dollars so that not too many homes are owned by banks. Some people are trying to increase their homes’ value by investing in hopes they can receive more money for what the home is truly worth. However, right now not many people are looking to buy a new home because of the economic trouble (unemployment rate is up and stock numbers are down) therefore raising the value of the home may have no effect to help sell their homes. Until we see a rising economy there is not much hope for people like Roberts.
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