Even the US, with their HPC at epidemic proportions, think we are screwed.

Really2

hbl wrote: »

Home ownership is a sham! When I tell people that I'm going to do exactly what you have described above (rent until I have a deposit large enough that it's more economical to buy), they say things like "but why would you want to pay somebody else's mortgage" and blah blah blah - so assured are they that buying a house with barely 10% down is the finest investment they have ever made.

I subscribe to the rich dad poor dad notion that your home is a liability first and an asset second, and a property with a 120% mortgage on it is no asset at all.

So good for you!

I Agree with parts of what you say but if you belived it all you would never buy.

Mary_Hartnell

Most of the states we know about seem to have "walkaway" laws.
I think they date back to the 1930's

http://www.bloomberg.com/apps/news?pid=20601087&refer=home&sid=ahJfJhKyxAWI

http://www.foreclosurefish.com/blog/index.php?id=259

Soot2006

Really2 wrote: »

I Agree with parts of what you say but if you belived it all you would never buy.

It's not about NEVER buying though -- it's about buying when the investment feels like a an acceptable risk. In my case that starts around 50-60% deposit - for other people it might be a 20% deposit. And the thing is I don't ever *have* to buy -- I'm quite happy where I am in my rented flat, and I would be happy in a different rented flat if something happened to this one. I *want* to buy so I don't have to answer to anyone but myself ... but if I had to answer to the bank, then that would, for me personally, be as stressful as answering to a LL.

purch

Non recourse states (that is states where you can walk away from the mortgage):

That's why they invented the Pick-up truck in the U.S.A.

Lob all your stuff in the back and move state....

WTF?_2

skap7309 wrote: »

http://www.iht.com/articles/2008/11/27/business/col28.php

Some snippets -

...Britons simply do not save enough to supply their banks with enough to lend to fund the debt requirement implied by their housing prices...

...On the other side of the equation, you have to wonder which buy-to-rent investor or potential home buyer is out there who a) is a good risk, b) possesses a 20 percent down payment and c) is willing to buy an asset that is losing 2 percent of its value a month...

...Bank liabilities in the United States are about 20 percent of the size of the economy. In Britain, the figure is 285 percent...

...So, it's looking as if the fall in British house prices will be further than expected...

...Ask yourself then what might happen to Britain...

Sorry I didn't see your post before putting it on another thread, Skap.

baileysbattlebus

Generali wrote: »

Non recourse states (that is states where you can walk away from the mortgage):

Alaska
Arizona
Arkansas
California
Colorado
District of Columbia
Georgia
Hawaii
Idaho
Mississippi
Missouri
Montana*
Nevada*
New Hampshire
Oregon
Tennessee
Texas*
Virginia
Washington
West Virginia

The advantage from the lender's point of view is that they can send a foreclosure notice to you if you in breach of the T&Cs of the mortgage and they don't have to take you to court to repossess you. The disadvantage is that they only get back what the property is worth.

* In these states the bank can get a court foreclosure and so have recourse for the rest of the debt if the sale doesn't cover the mortgage.

Foreclosure can be judicial or non judicial.
A judicial foreclosure, you are taken to court and sued for the debt by the lender, non judicial foreclosure is where the property can be foreclosed with out going to court - you agreed to that when you signed the mortgage contract.

Some states require a judicial foreclosure in other states the lender can choose which one. Often in a non judicial foreclosure you are not pursued for the debt. If the lender wants to pursue you for the money after a non judicial foreclosure they have to go to court and get a deficiency order.

Here is a list of all states and procedures.

http://www.all-foreclosure.com/procedures.htm