We've Got To Hold On!
Is the fear of loss prompting short-sales and foreclosures?
I hear some homeowners say that they could probably hang on to their homes, and make the payments, but realizing that the homes' value is so much less than what they owe; why bother?
People are motivated by two main factors; a hope for gain, and a fear of loss.
In the current mortgage situation, the hope for gain that normally is so critical in home ownership is not presently there. Kind of like paying the remaining balance on a dead horse.
Has a lot of the housing crisis been due to the fact that the homeowner feels they were "conned" into too high a rate by unscrupulous lenders?
It's easy to sit back and judge these people who are considering dumping their current home just because they are "upside down," but one cannot walk in their boots.
Most everyone who finances an automobile owes more than the vehicle is worth, but they can't let it go back, because it's harder to buy a car than it has always been to buy a house.
Difference being, the housing market will come back, and I feel it will rebound more quickly because of one big factor; Location!
They're not making any more land, so when we start back on the road to recovery, the choice locations in most areas have already been built on.
Sheer logic says those existing homes have to be more valuable than new homes going up on less desirable land.
Maybe I'm wrong, but I hope that if homeowners can hold on, that eventually they will again be sitting on a great asset!
Even if you are upside down in your home, hold on, it will get better!
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