It's been awhile since I last blogged. I've been focusing on other things such as buying and fixing up a 1920's Victorian style home and my wife going thru cancer for the second time. But today, news came up that needed to be told so it doesn't get lost in the shuffle of the newspages.
Back in March of this year, the report from the Obama Administration stated that data showed one in five U.S. homeowners with mortgages owe more than their house is worth. 1 in 5. Well, a Reuters Report quoting a Deutsch Bank study today stated that they expect by 2011, HALF of ALL mortgages will be underwater. Again... "HALF of ALL".
In other words, by the year 2011, 50% of all homeowners will owe more than their houses are worth. That means we could see the foreclosure market continue for quite some time, as mortgages continue to reset at higher rates AND as more and more employers layoff workers.
And what of those homeowners who may be underwater but can still make their house payment? They are the ones that will have to shoulder the burden with higher taxes as they collectively watch their stocks decline in value and their retirement plans continue to plummet as well. They'll be facing higher income taxes, capitol gains taxes and estate taxes in order to flip the bil for the restl.
I see an easy sell for the Obama Regime to accomplish the tax increase since only 50% of employed workers pay any income tax at all. So the other 50%? Of course they'll vote for a tax increase. Why not allow the other 50% pay for everybody else?
Things are looking bleak for many and no one yet knows the extent of the ripple effect. It's truly sad for homeowners however, as the Real Estate cycle always goes, it's a GREAT time for 1st time homebuyers and Real Estate Investors.
Oh, and sad to say...it's good for me.
Okay, time to get back to work on my new home!