Sacramento CA Homes For Sale – News You Can Use
Hi Everyone
Here is something you would not even think of. Home Owners walking away from their homes and mortgages could be a big help for the economy. Sounds stupid I know but somehow it could be true. This is according to some analysis (whoever they are).
Ownership of homes has dropped to 67.6 percent as of September. Homeownership peaked out at 69.2 percent in 2004. So what contributed to this decline. Yep! foreclosures caused it. The experts expects 21 million homeowners to be underwater (owe more than house is worth). We are talking big dollars nationwide. If only 20 percent of these homes underwater defaults then the banks and investors lose approximately 400 Billion (that is spelled with a B).
There is no doubt these losses would be hugh to banks but the money that is freed up by the home owners, not needing to pay these mortgages puts more money back into the economy. It is estimated that 5 Billion (again B word) a month would be freed up and and the consumers would buy other things.
So it is like this, the quicker the homeowners get rid of their debts the quicker the economy gets going in the right direction and start to stabalize.
What a crazy world we live in. It is just unbelievable. Hang in there folks, things will get better one of these days.
Sincerely,
Wes Clark
