Because the topic has been discussed so much in the last few days on this blog, I thought I’d pass along a link to a yesterday’s LA Times piece, Professor advises underwater homeowners to walk away from mortgages
In the article, Brent T. White, a University of Arizona law school professor, discusses his recent paper "Underwater and Not Walking Away: Shame, Fear and the Social Management of the Housing Crisis."
From the article, “too often people’s emotions get in the way of clear financial thinking about mortgages.”
If you’re interested in reading White’s 52-page paper, you can download a copy here.
Inept One
I have lived in Truckee for the past 18 years and would not leave if I could afford to keep my house. Long story short, my contracting business went into the tank, my income was cut in half and I have been living on my savings for the last year. Luckily my house sold recently and we have a house in Reno in escrow. My reasons for moving to Reno instead of staying in CA are numerous. Housing is cheap, taxes are relatively low, less snow than Truckee, I can still work in the tahoe basin, Close enough to Truckee…
Inept One
that I can visit my daughter and grandson often.
I have also come to like Reno because it has all amenities of a big city but you can usually drive from one end of town to the other in about fifteen minutes. I know (from reading this blog) that I should probably wait to purchase, but I needed a place to live and renting doesnt interest me. Long and boring , I know but thats my story.
Inept One
Thanks to all for the input regarding walking away from my lot. Its going to be a tough, painful decision either way.
BanteringBear
Good for you that you got out whole, Inept One. I suppose a different moniker is in order. My questions in response to your post were somewhat rhetorical, and not all directed at you but your profession as a whole. I guess I just wonder how seemingly all of the builders, collectively, ran after the high end customer without questioning the over saturation of the market.
If I want to open up a grocery store, but I see ten more open in town, I’m not opening a grocery store. Did the builders ever consider this? The sheer volume of “high end” spec homes sitting vacant right now is astronomical. There are not enough high income people to fill these homes. It’s astounding to me. I just wonder where the market research was. It seems like everything was on a wing and a prayer.
bob_c
human nature BB
contrarians can’t understand manias……way back before i completely exited the stock market i used to look at the fidelity select sectors and shift my money in the previous years worst performing sectors (i remember paper being a big winner for me)
one a contrarian…………