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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Elroy Jetson who wrote (11502)	7/8/2003 11:35:12 AM
From: Mr. Sunshine	Respond to of 306849

<<In a Trust Deed state like California people lose only their property and equity in a downturn. In a Mortgage state like Texas if the home is worth less than the mortgage the ex-homeowner owes the bank a Deficiency Judgement for the balance unless they file for Bankruptcy protection.>> Half true. In California a PURCHASE loan is non-recourse (the property is the only colateral), but with a REFINANCE or equity loan the lender could get a deficiency judgement. Seldom happens, because by the time someone lets a house go into foreclosure they are usually broke or bankrupt anyway. Also, FWIW, the IRS will count as INCOME any amount of the loan not paid. They call it "debt forgiveness" and adds insult to injury when someone gets a home foreclosed on. Not only do you lose your home and all equity that you had put into it, you also recieve a huge tax bill. There was talk of making a law that fixed that, but I do not think it was ever enacted.

To: Elroy Jetson who wrote (11502)	7/8/2003 12:26:05 PM
From: Jim McMannis	Read Replies (1) \| Respond to of 306849

It appears that since June 16th, the rate on a 30 year mortgage has crept up from 4.76% to 5.62%. That according to our major mortgage broker. This is verified by the TYX index (30 year long Treas. bond). Some bond money moving into stocks. Certainly not a trend yet but interesting. As for the Texas folk in the 80's..I know a few who walked but Like you said, some actually paid up I suppose.