Economic Headlines as they relate to the Crisis in Housing.
The economy doesn’t look so bad when you look at the auto figures. In July auto sales also did quite well. What does this tell you given the gloom that has overcome the housing market?
Car makers see big September sales gains.
SAN FRANCISCO (MarketWatch) — A sketchy economy didn’t stop more new car buyers from taking the plunge in September, with early indications showing double-digit improvements in vehicle sales across the industry.
What is going on? Why such a dichotomy? People are buying cars and they are also going on vacation. Although many people are stuck underwater on homes they are not putting their lives on hold or sacrificing enjoyment with the children over the housing crisis. The key here that we have seen with our short sale clients is that they have chosen in many cases not to make the mortgage payments on the properties where they are stuck. They have concluded it’s a bad investment that needs to be worked out but they are not willing to continue to throw good money down the proverbial rat hole. Instead they are buying cars and yes, going on vacation to places like Disney World.
When you consider the percentage of income that is no longer going to pay for the underwater home or investment property, you can see that it is very easy for people to splurge on a new vehicle. We have seen this as the trend over the past year. Many of our clients will ask us about this very point right out of the gate in preliminary discussions over strategy.
Where does this lead us as it relates to the housing crisis? The bottom line is the lenders are going to end up absorbing the majority of the losses either through foreclosure or short sale negotiations for the properties that are severely underwater with debt. There is no way the consumer can pay off the debt given many properties have declined in value more that fifty percent since 2007.
Debt has clearly consumed our housing market. Four years into the crisis and there is no end in site. If you are in a similar situation of a property map out a solution and solve the problem by the end of 2012. Please visit www.thenegotiatedsolution.com . Stop or Avoid foreclosure with a Real Estate Short Sale. Expert Attorney Negotiations! Maybe we can help you with a comprehensive strategy that allows you to solve your personal housing crisis and buy yourself a brand new car without foreclosure or more residual debt.
Blogging from the front line of the housing crisis.
GHunter
