Jun 9 2011 Americans’ Equity in their homes near a record low due to Sinking Home Prices

Americans’ equity in their homes near a record low Sinking prices taking a big bite out of home equity; average American now owns just 38 percent.

In this June 3, 2011 photo, members of the Home Defenders League rally in front of the Bank Of America in San Jose, Calif. The Obama administration is blaming the three largest U.S. mortgage lenders for the failures of its foreclosure-prevention program. It says they’ve done little to help people at risk of losing their homes.

WASHINGTON — Falling real estate prices are eating away at home equity. The percentage of their homes that Americans own is near its lowest point since World War II, the Federal Reserve said Thursday. The average homeowner now has 38 percent equity, down from 61 percent a decade ago.

The latest bleak snapshot of the housing market came as mortgage rates hit a new a low for the year, falling below 4.5 percent for a 30-year fixed loan. But even alluring rates have failed to deliver any lift to the depressed housing industry.

The Fed report is based on data from the first quarter of this year. Another report last week found that home prices in big cities have fallen to 2002 levels.

Normally, home equity rises as you pay off the mortgage. But home values have fallen dramatically since the bubble in prices burst in 2006. So many homeowners are losing equity even though the outstanding balance on the loan is getting smaller.

Nicole Rosen’s home in tiny Spanaway, Wash., just outside the military base where her husband works, has lost $150,000 in value since she paid $275,000 for it in 2006. She has battled mortgage lenders in court for two years to stay out of foreclosure. In the meantime, the couple are paying off credit cards, figuring it’s the only “positive thing we could do.”

“We’re paying off all our debt. We only have $200 left on our credit cards. But we’re stuck in our house,” Rosen said.

Home equity is important for the economy because it has a lot to do with how wealthy people feel. If they feel swamped by a mortgage loan, they’re less likely to spend freely on other things. Home equity also serves as collateral for some loans.

There are 74.5 million homeowners in the United States. An estimated 60 percent have a mortgage. The rest have either paid off the loan or bought with cash.

Of the people who have mortgages, 23 percent are “under water,” meaning they owe more on the mortgage than their home is worth, according to the private real estate research firm CoreLogic. An additional 5 percent are nearing that point.  Read More >>>

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Jun 9 2011 Calls to BOYCOTT Bank Forclosures and Home FLIPPER Purchases

Thursday, June 9, 2011

Jun 9 2011 It is TIME to BOYCOTT Bank Forclosures and FLIPPER Home Sales

By Morpheus of www.50kview.com

It is has been clearly established that the Wall Street Bunch and BIG National Banks were knowingly complacent in creation of the housing bubble which has devastated the United States Economy to the point of GARGANTUAN BAILOUTS being extorted out of the United States Citizens and Tax Payers.It has further been determined that the excessive GREED of the Home Flippers added to the FALSE PRICE INFLATION of homes. The House Flippers who were used by the bankers to run up market prices also profited like the bankers and maintained their profits if they were quick enough to get out of the market before the collapse.

These same Home flippers are at it again competing in the open market with actual home buyers and helping the BANKERS to run up prices of otherwise reduced price FORECLOSED HOMES. When you buy a home form a Home Flipper, you are in fact working to again run up FORECLOSED HOME prices which would otherwise remain a bargain to YOU the ACTUAL HOME BUYER!

In addition the BANKERS are again unappreciative to the People of the United States who have BAILED them out. The Bankers are displaying contempt for buyers with delayed responses to offers, requiring perspective bidders to sign unconstitutional documents relinquishing all consumer rights and the Bankers are trying their best to not give any buyer the lower purchase prices reflective of a foreclosed home a deal.

With this in mind Morpheus of http://www.50kview.com is calling on all perspective buyers to BOYCOTT the BANK FORECLOSURES and Boycott the Puchase of any Home which has been purchased by Home Flippers for resale to you the actual HOME BUYER.

Posted by Morpheus