Tuesday, May 4, 2010
More than 11 Million homeowners agree that is a better value for them to abandon their houses and rent another one and that’s one quarter of all borrowers, this borrowers have in common that they were underwater on their mortgages by the end of 2009.
Also these strategic defaulters seem to have a better credit score than those who stayed paying their underwater mortgage.
Other borrowers that are up to date with their payments also walk away on their mortgage after seeing bank policies and government programs that gives them little assistance. Studies had discover than a big part of the strategic default is when the up to day payers walk away from their mortgage when they find out that other borrowers who have negative equity receive a partial loan for forgiveness.
However, the majority of foreclosures are not stratigic, and the Florida Association of Realtors started an analysis that cross referenced three years of foreclosures with demographic data. The idea is to find out what kind of people is falling into foreclosure, ignoring speculators and investors, just considering people that bought the house to live in.
This is what they found:
1. Income > $100,000 =20%
2. 8% School graduated
3. 15% College degrees
4. 92% Married
5. 65% Had children
6. 35% is the percentage of people that lived more than 10 years in their house.
A large part of them is people that lose their job and cannot afford payments.
Source: By David Garay, May 3, 2010 8:00 AM ET
More singles are buying homes in suburbia, reports in independent report by a popular real estate franchinse which conducted a nationwide survey of single home owners on the factors that motivated them to buy.
Here are some figures that reflect the reasoning behind their choices:
• 52 percent chose the suburbs over urban or rural areas.
• 53 percent of single home owners said they purchased a home because it was a better deal than renting.
• 68 percent chose a home priced lower than they could afford.
• Of the 13 percent who own their home jointly with another person, 49 percent made the purchase with their parents.
• 55 percent have less than a 30-minute commute to work.
• 40 percent live within 30 minutes of their parents or extended family.
• 27 percent of women thought the number of bedrooms were important, while only 18 percent of men felt the same way.
• 38 percent of men would consider buying a foreclosure, while only 29 percent of women would consider one.
Eight-seven percent of first-time home buyers changed their lifestyles because of unexpected expenditures related to buying a home, according to a new survey by BBVA Compass, the nation’s 15th largest commercial bank.
• 51 percent said that the monthly expense of owning a home was more than they calculated.
• 70 percent said that the unexpected expenditures leveled out over time.
• 33 percent said they paid for these unexpected expenditures with a mixture of cash and credit.
• 92 percent say having additional time before their first payment due date would have been helpful
Source: NAR - Realtor News
In the summer of 2009, NAR Research surveyed recent home buyers about their experience with the home search process, and the use of real estate professionals in purchasing a home. The results of the survey were published in the 2009 NAR Profile of Home Buyers and Sellers.
Single Female Home Buyers
Single Female Home Buyers