Monday, December 20, 2010

HOME VALUES LOST ANOTHER $1.7 TRILLION IN 2010

2010 saw homeowners losing $1,700,000,000 in the value of their homes.  This is on top of the $1T from 2009!  That is putting more and more homeowners "underwater", owing more than the house is worth on the open market.



Now comes another twist to the housing recession.  Many Americans are turning to "Strategic Default", a phrase used to describe homeowners that are simply walking away from their homes before they not only lose their home but any nest egg they have before the bank if forced to foreclose on them.  48% of Americans now think that this is an acceptable alternative to foreclosure. 

Here is the downside to this new twist.  How is the housing market going to recover if more and more houses keep hitting the market at lower price points than new homes?  B of A and other lenders just announced that their moratorium on foreclosures has ended and as many as another million homes will soon be hitting the market.  At the same time, these same banks are tightening their credit and appraisal requirements. 

I hope I read this incorrectly but it seems that the year-end bonuses for the banking and stock brokers that put our country in this mess are paying themselves $143 billion in bonuses this Christmas.  Merry Christmas to them.....Bah; Humbug!

1 comment:

Anonymous said...

Wall Street bonus are a good shot for the economy. They spend their bonuses on house and other large ticket items.