Cosmic Cow Pie: Connecting the Dots

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Underwater Mortgages

Hello all,

Do you know Terry Chenier?

He is one funny man... he has a new book coming out and this is an example of some of the fun he has with his writing!

Hope you enjoy the posts.. I am going to share a few!  

It would be great if you find Terry and check out some of his REALLY funny stuff! 

Underwater Mortgages.

This is primarily an American term; in Canada, we call this negative equity.

When the value of a house isn't worth as much as the mortgage against it,

the situation is known as underwater mortgage. It usually happens when a

housing boom cause prices to rise rapidly. Houses are re-financed for the

maximum allowed at the inflated price. Bust usually follows boom, and prices

fall sharply, as happened in States recently, and to some degree in Canada.

(The preceding was added for Canadians as this is not a Canadian term).

Right now in the States, this affects 10.7 million properties.

(That's about 23% of all households).

It gets worse. There is right now, about 2.3 million additional

households with less than 5% equity, which are going to be needing re-financing.

In my opinion, that is going to glut the market again. I have had Canadian investors

ask me whether they should be buying right now and in all conscience, I have to

tell them to hold off for a bit, unless they are in it for the long haul.

I don't think it's going to depress prices further-it's going to stagnate them.

It will come back; it just isn't to happen over night.

The five hardest hit States are California (35%), Michigan (37%), Florida (45%),

Arizona (48%) and Nevada with a mind-boggling (65%).

Having said all that, I have referred several people

to Arizona, California and Nevada,

because I know they are in it for the long run. (10 years).

In most cases, their purchases down there wouldn't even buy the lot in Canada.

 

I don't recommend Florida, and Michigan isn't a player

as Canadians I deal with want sun-belt property.

So, if you some extra cash and are looking for good buys and you can wait it out,

call me. I have a referral network in place now

.

 

Carra Signature Large

 

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Cosmic Cow Pie

Carra Riley

Comment balloon 8 commentsCarra & Shae Riley • November 26 2009 10:48PM

Comments

I can't

Posted by Team Honeycutt (Allen Tate) almost 10 years ago

I can't wqait

Posted by Team Honeycutt (Allen Tate) almost 10 years ago

I can't wqait to

Posted by Team Honeycutt (Allen Tate) almost 10 years ago

I can't wait to read the new book. Should be great.

 

Betty

Posted by Team Honeycutt (Allen Tate) almost 10 years ago

Carra,

 

That was really c ute, love the caratures.

 

-David

Posted by David Zablatsky, Real Estate - Needham, MA (Avant Realty Group) almost 10 years ago

Betty and David.... you are both too cute... thanks and nice to meet you!

Your new friend in the Cosmic Cow Pie.

Posted by Carra & Shae Riley, Helping people Transition at all ages! (Brokers Guild Cherry Creek Ltd) almost 10 years ago

Howdy there Carra

I'll have to see about picking up Terry's new book. I've visited Terry's blog posts in the pass, need to stop by to visit him some more. Thank you kindly, for reblogging this here blog post of his.

Baker Home Commercial Properties Inspections and Consulting AR Signature

Posted by Dale Baker, New Hampshire Relocation Real Estate Information (Baker Energy Audits and Commercial Properties Inspections) almost 10 years ago

Dale,

Thanks for stopping by!  Terry is going to enjoy the fact you are coming to visit... thanks

Posted by Carra & Shae Riley, Helping people Transition at all ages! (Brokers Guild Cherry Creek Ltd) almost 10 years ago

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