The Great American Single-Family Home Problem

Re:The Great American Single-Family Home Problem by smsm42 on Saturday December 02, 2017 @01:36AM (#15830575)

If somebody bought it recently, chances are they own no more that 20-30% of it. Which means if the value goes up 14%, they are in good place (though not seeing a cent of that money until they move), but if the value goes down 20%, they are in trouble. And if they have to move, they are in real trouble.

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Re:The Great American Single-Family Home Problem by bradleyjg on Saturday December 02, 2017 @10:50AM (#15832344)

Wait, highly levered investments are risky -- who knew?

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Re:The Great American Single-Family Home Problem by incompatible on Saturday December 02, 2017 @05:29AM (#15831302)

I had the impression (from the last financial crisis) that if prices go down, home owners just mail the keys to the bank and walk away.

Assuming they have little equity to start with, of course.

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Re:The Great American Single-Family Home Problem by smsm42 on Sunday December 03, 2017 @02:04AM (#15836399)

It's not that simple. Bankruptcy or foreclosure ruins your credit and you have still to live somewhere.

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Re:The Great American Single-Family Home Problem by pault on Saturday December 02, 2017 @01:28PM (#15833209)

Fine, but those people are not going to be getting another loan any time soon.

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Re:The Great American Single-Family Home Problem by ajross on Saturday December 02, 2017 @02:28PM (#15833537)

They are, actually. The market is hot again, and banks aren't idiots: they know that people pay their mortgages before other debt, even if they have a foreclosure in their past. Walking away from an underwater loan (which is a rational decision that connotes good decisions in the future) doesn't actually hurt your credit in the same way that getting behind on your credit cards does (which is evidence for poor money management skills).

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Re:The Great American Single-Family Home Problem by rainbowmverse on Saturday December 02, 2017 @08:20AM (#15831755)

I get the feeling this was written about more often than it happened. A lot of journalists were trying to justify their salary with ad views while the economy was in free fall.

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Re:The Great American Single-Family Home Problem by Godel_unicode on Saturday December 02, 2017 @02:17PM (#15833470)

Do you have data or any sources to go with this feeling?

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Re:The Great American Single-Family Home Problem by lamarpye on Sunday December 03, 2017 @03:07AM (#15836568)

It would be nice if the article provided some data.

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