As a housing counselor here in Southern Oregon working day in and day out with homeowners who have encountered financial difficulties the one common thread I see throughout my day is their stories are complicated!
The homeowners who own property that has been in their families for 100 years – are they going to walk away because when their turn came to take over their family’s American Dream it was at a market peak and they are now sitting at 140% LTV? Or the family who took cash out to build an additional dwelling unit because their brother lost their job in the construction industry, and he and their sister-in-law, nieces and nephews needed a home since they still haven’t secured living wages and then encountered a major medical situation with insufficient insurance?
With the high percentage of devaluation since our area is one of the Hardest Hit with unemployment and foreclosure, how quickly will values appreciate when the economy stabilizes and our citizens are able to secure living wages again…more than 20%? Most of the homeowners I meet are wrestling desperately with the fact they AGREED TO PAY, but now cannot, and are desperately trying to find a way to meet their obligations… I don’t think 20% negative equity means much to them.
Suze Orman, maybe the ABC World News report was a clip, but it just isn't that simple...
See you out there!
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