Survey Shows Homeowners Will Dump Mortgages
In a sweeping change of opinion, more than 1 out of 3 homeowners say that if housing prices continue to slide they’ll walk away from their mortgages, according to a new Housing Predictor survey. The poll demonstrates major changes in the way Americans feel about the U.S. banking system and their own financial well being.
Americans have historically felt responsible to fulfill financial commitments made to banks and mortgage lenders. Business models tracking foreclosures have figured that defaults would be limited to less than 6% of all home mortgages. The foreclosure epidemic has grown to become the nation’s worst financial disaster coupled with the credit crunch since the Great Depression damaging the entire economy.
Respondents to the survey are demonstrating they are fed-up with the way the economic downturn is affecting their lives. Some 36% surveyed said they would walk away from their homes if housing prices fall for a number of years. The credit crisis on Wall Street quickly spread to Main Street as more than 4-million homeowners from every corner of the economy had homes foreclosed.
Wall Street traders developed a series of new financial instruments to trade mortgage backed securities to fill a record supply of home mortgages, many of which were to subprime borrowers at first and then to conventional mortgage borrowers. A year after the crisis began a new national record high number of homeowners had shrunk to a record low.
Growing unemployment and worsening consumer confidence have led to an increasing number of foreclosures, despite efforts by the Obama Administration in Washington and Congress to slow the epidemic of foreclosures.
Housing Predictor forecasts more than 250 housing markets and surveys visitors on real estate related topics. Check your market forecast, real estate news and get the latest on the foreclosure epidemic at http://www.housingpredictor.com
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