Monday, February 2, 2009

Difficulties of the housing price collapse

By Michael Boshnack

This article talks about lenders saying one thing to the public, but doing another.

"They want to stay in the house; they've lived there for 15 years and, well, it's home. They're way underwater, owing about $510,000 on a property not worth much more than $350,000 right now. All they wanted was an interest rate reduction for five years. They didn't ask the bank to "cram down" their loan to the $350,000. Meanwhile the market in town is just horrid."Nothing is selling in Las Vegas," said Wright. "Nobody even goes to foreclosure sales anymore."If the bank does follow through and repossesses the house, it stands to lose $200,000 or more."It's so unnecessary for people who are trying to work this out," said Wright."

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