I keep looking for signs that the economy is on an upward slant. I wait for the news from wall street to brighten, for the sun to come out and for the birds to sing. I wait for smiley faces to great me when I open my bank statements.
I am still waiting.
I read today that the value of many homes that used to be worth $1 million in the Salt Lake area has dropped from 30 to 40% percent since the real estate market tanked several years ago. This means that some of these home owners who wear shoes not made out of pleather and corrugated cardboard are still in deals that will cost them more than $400.000 than their homes are worth on the market today.
Loan officers say that the high-end homes -- meaning the homes with heated drive ways,servant's quarters and contoured toilet seats -- will be years trying to re-gain their full value, and it may never come back."
These same mortgage-men say that homes worth half-million dollar may be a different can of worms altogether. These homes will most likely see their value return much more quickly than those of the richer homes up the road.
Fortunately, I am not one of the people with a million dollar home. Yeah, ...I am really happy about that. No nice home for me with all the responsibilities and pleasures and joys and dry mold-free walls that come from nice-home ownership. I am not even the guy with the "half-a-million-dollar" home with floors and roofs and floors. And Everything. How sad for me.
I rent. I rent because I lost my home for reasons that I am rather embarrassed about.
I it seems that I was poorer than I had planed on being.
I gotta say that while the banker guys are miffed, I actually understand the "how and why" someone would walk away from a house they would lose money on. This type of "strategic default" would still leave one having to pay the difference between the resale value of the home and the amount of their loan - like there are hoards of folks standing in the queue to by the Mc Mansion of Utah.
Apparently with the economy as is, these people who walk away from their home loan won't be able to buy another home for at least four years, possibly longer depending on the mood ring on the hand of the lender.
Four years sounds about right. I wonder if they need a house sitter?