Home Prices: The Next Leg Down

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the thing for me is that I am in better shape job wise than most. My employer has reassured me that my job is secure. Can a person really believe that? I am looking at puting in an offer on my first home today, and even with a job it is a really scary process. Trying to find some grant money to help pay down the debt is almost impossible. Does anyone know where a hard working US citizen can find such help? If so I would love to hear from you. Wish me luck.

Bonnie of WI 9:19AM January 27, 2010

What this article leaves out is strategic defaults where the home owner looks at how upside down he is and makes a conscious decision to stop making payments and default on his mortgage. In Southern California where I live, many home owners owe $600,000 on a home that's only worth maybe $350,000. Then they can turn around and buy that cheaper home in the wife or other family members name. I see it happening all the time. I'm convinced that this is a bigger threat to the stabilization of the real estate market in my area than unemployment.

Gerald Lemoine in OC of CA 9:10AM January 27, 2010

Sadly, not everyone can afford a home. When Bill Clinton and Henry Cisneros tried to void that rule back in 98 we set up a chain of events that have brought the current result. To maintain various ways to artificially maintain prices, like the tax credit and foreclosure assistance, helps no one in the long run. Prices do not find a bottom and the real estate market cannot rebound. It cost time and jobs.
Now we have a prolonged period of unemployment and even more people cannot afford a home.
The one thing Govt did right back in the early 90's was to allow the bad loans banks held to be sold off at the values the market would pay for them. As a result we found that bottom much quicker.
Today we have an Administration that has little or no clue and an unlimited checkbook to try anything they like that so far, has been unable to stem the tide.
Govt caused this problem, not Banks.......Govt has to realize they cannot do what is popular to end it.

tom of TN 8:39AM January 27, 2010

i am glad the new president gives money to big companies ! i love money and have alot ! i know the lingo and playcard to fit into any situation ! the new leader has made me rich w/ the stock market in march and my union health care benefits are just the most ! when clinton gets in next, my oil stock will again make me richerer ! i am soooo happy - who ever thought being a socialist could be so bad ! let them eat bread right comazars !

bill of CA 8:27AM January 27, 2010

Why is it that no one is mentioning that what started all of economic problems we now have was the outrageous increase in gas prices 2 1/2 years ago. Back then the news story for six months was that people had to decide whether to buy gas to get to work or pay their rents / mortages. Yes the other factors were / are problems but the original problem was gas going from 1.89 to 4.59 in less than nine months. Maybe if gas prices went back down to 1.25 it might fix the problem. Hmm.

Gerald Bollinger of NY 8:00AM January 27, 2010

Yes here in Montgomery county Maryland the housing here are up to the roof still very expensive, the cheapest is 399,000 but very old around 1950's for that old it shouldnt be that much money, the expensive one it cost about 1 million its insanity who the hell can afford the housing for 1 million, have to be 2 people work for that money mom and dad have to work both.

Sarah of MD 7:51AM January 27, 2010

If housing was affordable to begin with we wouldn't be in this mess. When greed takes over in the housing market, there really isn't much left in the land of oppertunity is there? Nobody these day's can afford that> "AMERICAN DREAM" ANYMORE!!
Time to wake up!! people are still losing jobs and homes..But yet here in NH the housing market still isn't cheap. What gives? and if for some reason you do find something affordable to your liking,Then watch out for the TAXES and other cost they sneak in on the property. REDICULOUS TO SAY THE LEAST. Realitors are the ones who decide on the price of your homes. Because a home in the area sells for 240,000 doesn't mean your house will sell even close to that. We are in hard times, time for the realitors and banks to wake up and smell the coffee. OBAMA isn't doing anyone any favores with this 8.000 dollar tax credit, it will be added on to your last mortgage payment people. Don't be nieve read the fine print as we did when we were looking.

Deb of NH 7:11AM January 27, 2010