Underwater homes, mortgage defaults shadow housing market

Early this week, the news was an increase in housing prices nationwide:  the end of the slump is near, said the commentary.

They glossed over the bit about nearly 7% of homeowners are behind on their mortgages.  Then yesterday’s announcement that nearly 25% of American homeowners owe more on their home than it’s worth.

I sat in bankruptcy court yesterday on a relief from stay calendar where 150 debtors were at risk of losing home or car.  That’s one calendar, before one judge in a 9 judge district.  There will be a like calendar today.

I wonder where we are if we simply stand back and let the situation play itself out:  hordes of foreclosures, bank owned real estate, and lending criteria that shrinks the pool of buyers even smaller than those who have steady employment.  The nation has been conditioned to see home ownership as the linch pin of success in America;  where are we if the belief lingers, but is unattainable?

About all I can find to be thankful for is that I’m a bankruptcy lawyer.

Related posts:

1. Senior Care Industry – Another Casualty of Housing Market?
2. Obama Housing Plan
3. Rich homeowners underwater and drowning – Senators could care less