Monday, August 10, 2009

Las Vegas: 81% of mortgage holders upside down

The Las Vegas Sun had an article today pondering the willingness of homedebtors to default on their mortgages, even if they could pay (link - The Vegas Way Out). But what really caught my attention was the eye-popping percentage of people who are currently upside down (EIGHTY ONE PERCENT!!!)

For those of you who have been following this blog for some time, maybe you will recall my post from Aug 2008 (link), where I closed with the question:

"So, will the headline this time next year be: Vegas home prices have fallen to 2000 levels and 60% of those who purchased in the last 8 years are now upside down?"

Guess we all know the answer to that question now.


Anonymous said...

On a local radio show a lady calls in who has 2 houses paid for worth 100k and 200k +/- and is living in a house that is underwater by 70k. Makes 100k combined income. 70k in credit card debt that she works into 0% accounts.

She said the 0% interest game looks like it is coming to an end. She is trying to figure out how to work the system so that she ends up with her credit intact as the driver by maybe loading up debt on one of the properties and letting it go into forclosure.

The attorney basically said that bankruptcy was of no use for her and that she was in great shape compared to most people. Only 70k upside down. Da.

It is anecdotal, but I see this mindset of hose everyone else as long as I get mine from top to bottom.

The dominant rules of this greed game have turned so predatory that I think we are close to the tipping point where trust could break down completely.

Keep up the good work on sifting through the lies.

45north said...

81% of borrowers in Las Vegas are upside down!

trust could break down completely

The attorney is right she is in great shape compared to most people. She could sell both houses, one for 50k and the other for 100k pay down her mortgage on the house in which she is living and pay off her credit card. Obviously she has to take a loss but life goes on. Her individual decision and millions of others will determine the course America will take. America is being tested - may she pass the test.

Anonymous said...

Don't know about you'all, but I'm getting kinda numb.

At this point I:
1) minimize my tax profile and investments such as to "starve the beast"
2) work furiously weekends on my option B escape route
3) convert to hard assets.

Anonymous said...

Government caught hacking into protestors computers!

It’s all there in black & white by Judge Napolitano!

If you object, they take your name, number & crack your computer! And they have so you can rat-out your neighbors for saying offensive things about Obama!

Obama who was elected to bring our troops home spontaneously reneged on all his promises upon election

His masters paid 2 billion to get him elected; now he announced plans to start a seven million man personal army or Brown Shirt Gestapo

Meanwhile the Veterans Disarmament Bill was passed removing gun ownership from many Vets

Obama has just been sued over Napoleon-tino's latest Law Enforcement mandate to imprison anyone that objects to Obama's plans

Obama broken promises:

No. 1: 'Sunlight Before Signing'
No. 2: Capital gains tax elimination
No. 3: New American jobs tax credit
No. 4: Hiatus on 401(k) penalties
No. 5: 'No jobs for lobbyists'
No. 6: Earmark reform
No. 7: Bring troops home in 16 months
No. 8: Sign 'Freedom of Choice Act'
No. 9: $4,000 college credit
No. 10: Transparency
No. 11: Executive signing statements
No. 24: End income tax for seniors making less than $50,000

No. 240: Tougher rules against revolving door for lobbyists and former officials

No. 508: Allow penalty-free hardship withdrawals from retirement accounts in 2008 and 2009

No. 511: Recognize the Armenian genocide

No. 517: Negotiate health care reform in public sessions televised on C-SPAN

Anonymous said...

Most home mortgages are non recourse. The borrower can't/doesn't pay the bank takes back the home. Its an agreement both parties agree to before the loan is made. I would hand the home back to the bank, sayanara.