(Reuters) - More than 1 million Americans who have taken out mortgages in the past two years now owe more on their loans than their homes are worth, and Federal Housing Administration loans that require only a tiny down payment are partly to blame.
That figure, provided to Reuters by tracking firm CoreLogic, represents about one out of 10 home loans made during that period.
As of December 2011, the latest figures available, 31 percent of the U.S. home loans that were in negative equity - in which the outstanding loan balance exceeds the value of the home - were FHA-insured mortgages, according to CoreLogic.
Many borrowers, particularly since late 2010, thought they were buying at the bottom of a housing market that had already suffered steep declines, but have been caught out by a continued fall in prices in wide swaths of America. Definitely got the change, but confused about the hope part.
In related news: Thirty-five big U.S.-based multinational companies added jobs much faster than other U.S. employers in the past two years, but nearly three-fourths of those jobs were overseas, according to a Wall Street Journal analysis.
Recent home loaners who thought they were buying at the bottom of a doomed housing market turned out to be catchers of falling knives. Hard to be left holding the bag when your fingers have been cut off.
To complicate home purchasing even further, try buying a "short sale" property. The price as listed may NOT be the actual price if the lending institution does not "approve" the sale, the approval of which can take months. I suspect the bank must get gov't assurances that their loan will be restored, and that is the old up.
The housing market in Georgia has YET to bottom out as many houses remain empty, abandoned and unlisted. Evidently the banks (or gov't) do not want to flood an already fully saturated market.
I agree BP. Isn't it interesting though, the "rules" they just keep changing:
1. I put money in the bank and earn interest.
2. I take out a US Savings Bond each month.
3. My company has a pension plan. 4. I prefer 12 month CD's 5. My home is also an investment. 6 My 401k plan is growing nicely. 7. My PMI is tax deductable. 8. The Alternativer Minimum tax does not effect me. 9. The sale of my house is tax exempt.del>
Now it might not be a popular view here, but I think the economy has been structured so extracting "energy" from the economy without work seems untaxed, yet working etc is highly taxed. Seems to favour the politically connected very well.
[Daily Nation (Kenya)] French Socialist presidential frontrunner Francois Hollande toughened his stance on immigration Friday in a campaign increasingly fought on themes dear to the far right.
Hollande will face right-wing Nicolas Sarkozy ...23rd and current President of the French Republic and ex officio Co-Prince of Andorra. Sarkozy is married to singer-songwriter Carla Bruni, who has a really nice birthday suit... in a May 6 run-off for the presidency, and both are scrambling to recruit voters who backed far-right anti-immigrant candidate Marine Le Pen in the first round.
Hollande repeated a pledge to ask parliament to cap the number of migrants allowed into La Belle France every year -- Sarkozy has vowed to halve the number to around 100,000 -- but warned it would never halt the flow.
I didn't think The One could stoop so low. So why am I not surprised?
Would Mitt Romney have ordered the raid that killed Osama bin Laden? President Barack Obama's re-election campaign released a new video on Friday that strongly implies that he would not have, using the presumptive Republican nominee's own words against him.
Ever since Vice President Joe Biden boiled down Obama's 2012 slogan to "bin Laden is dead, GM is alive," it has been clear that the embattled incumbent would not hesitate to use the May 2, 2011, Navy SEAL strike as a political weapon. Never in the course of human events has one person taken so much glory for something he didn't do.
The video, taken from footage shot for Obama's 17-minute campaign commercial "The Road We've Traveled," opens with the message "The Commander-in-Chief gets one chance to make the right decision" and turns to former President Bill Clinton for validation. "That's one thing George Bush said that was right: The president is the decider in chief. Nobody can make that decision for you."
The Obama video came one day after Vice President Biden, in a speech assailing Romney on foreign policy, declared: "On this gut issue, we know what President Obama did. We can't say for certain what Gov. Romney would have done." I still think Obama hesitated until someone else said "Go" - that way he could blame someone else if it failed.
As Commander in Chief, President Obama deserves copious accolades for the Bin Laden take-out that occurred on his watch. First, the intel was fully developed under his administration. Second, he acted proactively on said intel. And finally, the decision to send troops and not munitions was the right call. With that said, and with all due respect, the event deserves more perspective.
First, it would be na´ve to believe that the foundation for the actionable intelligence didn't originate from platforms Obama continues to call "excessive". Second, it's unimaginable that any post-911 US president, when given the chance, wouldn't act decisively to take out the world's most notorious terrorist. And finally, all military operations into sovereign countries carry enormous risk. However, launching cruise missiles into a country engaged in a nuclear cold war with its neighbor would have the potential for regional disaster. Such repercussions would be too risky even for the likes of a Bin Laden.
A President Bush, President Obama, and even a President Romney, in all likelihood, would have made similar decisions on this one. President Obama appears both shallow and foolish to suggest otherwise.
Peggy Noonan of all people has an article out about how booring, or more specifically summed up, how he fails to make any noteworthy appearance..other than getting booed at sports events that is.
I remember how I first heard about the binny raid. It was from a baseball broadcast announcer. And not because I was not disinterested, it was because bammer was late to his own endzone prance, specifically an oddly telephotoed hallway walkup and walk out. I remember the fans in the stadium getting out a solid USA! chant a couple times, flipping back in between pitches and plays, to an ever waiting and uncomfortably impatient White House broadcast.
I will say that I am a bit pleasantly surprised. This week was the surprise week that people finally convinced me to be fully on board with Team Romney. Way to go Department of Labor, Enemy List, and purely speculative and broadly petulant Minority Report type styling of such a small speculation of unreality.
Perhaps next week, now that the Horseland Cartoon depicting kids taking care of Ranching Equipment is no longer going to be anti-government propaganda, preezy could allow his opinion onto whether the blond haired boy is really running a slave trade in the guise of what would have been an illegal dude ranch, and of course I am sexist for the Specolish use of dude.