weswelker#83

Stimulate this Mr Bush: 1 in 10 American homeowners face mortgage meltdown

http://www.nytimes.com/2008/06/06/bu...prod=permalink

otis p. driftwood

First graph from your story:
About 1 in 11 American mortgages were past due or in foreclosure at the end of March, according to a report released on Thursday, a figure that is rising fast as home prices fall and the job market weakens.

Could someone tell me what falling home prices have to do with whether or not people can pay their mortgages?

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weswelker#83

Wow, Continental airlines just layed off 3,000 people today......

weswelker#83

WOW, United airlines ground 70 planes and cut as many as 1100 jobs , and Fidelity Investments is cutting 550 jobs ....

Honey, I lost my job making xx.xx an hour today. I thought I was going to be there forever. I have to get a job at blank. We are probably going to lose everything.

otis p. driftwood

Just a few more months and everything will be okay!

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BelichickFan

The job market is doing OK - for a slowdown. Your problem is you mention every job loss but not job gains. Although there's a net loss right now it's not nearly as bad as you make it out to be. Just like NAFTA - it's cost the U.S. jobs, which the Libs mention, but it's created more; which they don't mention.

As far as the loan problem - a small part of it is people losing their jobs. A bigger part is them getting loans they couldn't afford. Lots of people made bad decisions, getting loans they knew they couldn't afford when they re-set but assuming they could sell at a profit. Don't come crying when your auto profit maker doesn't come through. There's no sure things and the housing market sure isn't one of them even though lots of people assumed it was.

DarrylS

Sounds like a lot of people owe more than the house is worth.. know that to be true from some of the young'uns I know who bought houses about 3 years ago...

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BelichickFan

No *****. a.paul's point is that doesn't affect the mortgage payment unless they got an adjustable loan.

otis p. driftwood

Yeah, that was my question. My house value went up, then came down, but I've still managed to pay the mortgage.

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BelichickFan

Clearly it affects those who have to sell, if their job moves, they're laid off or they have to move for whatever reason. And there'll be some of them but a very small minority. The bigger group would be those who got an adjustable loan and assumed they could re-finance before the reset. But now they can't re-finance because they're upside down. There's probably a lot more of them. Then there's some who probably say "screw it, my house isn't a cash cow anymore, I'm walking". And speculators/flippers who bought and assumed they'd sell in a year.