This will not come as a surprise to you, but the number of homeowners now underwater or upside down with their mortgages has reached almost a full quarter of all homes with a mortgage, a total of 11.1 million households. With 23.1% of all homeowners owing more on a mortgage than their homes are worth, I wonder how many people will begin to think that walking away from their homes is a better idea than staying put. […]
I have a confession to make. I live and work in New York City, but unless I get a major upgrade in pay, I don’t ever expect to own a home here. Why? Home prices are crazy here, but even worse than that, I think that 30 year mortgages are for suckers, and that’s the only way that I could ever be able to afford mortgage payments. Before you get all upset with me for talking down to you about your own mortgage situation, hear me out. […]
TweetI predicted the foreclosure crisis. No, really, I did. Let me tell you my story.
I’ve worked for a number of the large banks that you have heard of. Probably too much in fact. I was fired from a job at one investment bank after a few months of butting heads with my new boss. He was a real idiot and very full of himself, and I refused to kiss his ass. Call it pride, I call it dignity. Within 3 weeks I had a job at a commercial bank, in their wholesale mortgage lending division. It was my first time working in this kind of banking institution and I was up for a change of pace from working in Manhattan. I can safely say that it was at Washington Mutual (now part of Chase) in an office park on Long Island. There was one large, very open room filled with people all processing mortgage applications. I don’t even know how many people worked there because it was not a warm and friendly place. […]