The folks with the big houses/mortgages have problems. Many of them owe more on the house than it is worth. Leave the house and they lose any down payment or equity they have in the house. They have leveraged the house to pay off/lower their credit card debt. They are in fact bankrupt by their house payment. There is no equity left to trade for a smaller house. Regards, Bob S.
On Fri, Nov 7, 2008 at 11:41 AM, John Francis <[EMAIL PROTECTED]> wrote: > On Fri, Nov 07, 2008 at 08:24:42AM -0600, William Robb wrote: >> >> ----- Original Message ----- From: "Bob Sullivan" >> Subject: Re: Foreclosures: Bruce Gilden >> >> >>> I'm suprised by the focus on the low priced home segment of the market. >>> News reports here put the bulk of the problem in the high ($350,000+) >>> priced homes. >>> This report becomes a kind of cliche...hard luck stories of broken people. >>> Regards, Bob S. >> >> I expect the people on the lower end of the price range are far more >> affected than the people on the higher end of the market. > > Depends on how you look at it. The problem comes because people took > out loans on more house than they could afford, assuming real estate > prices would continue to climb. That sort of price speculation was by > no means confined to the cheaper end of the housing market. > > On the other hand, though, if you find you can't afford your $400K > loan you're a little more likely to be able to find something cheaper > than if you had stretched to buy in at the bottom end of the market. > (Assuming you can find a bank prepared to make you a loan, of course). > > -- > PDML Pentax-Discuss Mail List > [email protected] > http://pdml.net/mailman/listinfo/pdml_pdml.net > to UNSUBSCRIBE from the PDML, please visit the link directly above and follow > the directions. > -- PDML Pentax-Discuss Mail List [email protected] http://pdml.net/mailman/listinfo/pdml_pdml.net to UNSUBSCRIBE from the PDML, please visit the link directly above and follow the directions.
