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

To: John Vosilla who wrote (247830)	5/12/2010 10:17:42 AM
From: Jim McMannis	Respond to of 306849

Emotion Drives Many Defaults . online.wsj.com People often fall in love with their homes based on some charming but impractical feature or other. Now, increasing numbers of homeowners are abandoning their nests for similarly emotional—and sometimes irrational—reasons. It turns out that many of the Americans defaulting on their mortgages are doing so out of anger, fear or despair rather than making a purely sensible decision about their best financial interests, a new study found.

To: John Vosilla who wrote (247830)	5/12/2010 10:20:48 AM
From: Jim McMannis	Read Replies (2) \| Respond to of 306849

You're an investor right? Be warned. G JPMorgan Chase Warns Investors About Underwater Homeowners Walking Away huffingtonpost.com The nation's second-biggest bank is warning investors that underwater homeowners may walk away from their mortgages. In a Monday filing with the Securities and Exchange Commission, JPMorgan Chase told investors and regulators that homeowners who owe more on their mortgages than their homes are worth may not continue to make their payments -- even when they're able to. "Declining home prices have had a significant impact on the collateral value underlying the firm's residential real estate loan portfolio," the bank stated. "In general, the delinquency rate for loans with high LTV [loan-to-value] ratios is greater than the delinquency rate for loans in which the borrower has equity in the collateral.