Job Loss Could Put One in Three Out of Their House
2011 Oct 7, 1:56am 15,448 views 46 comments
by BobbyS follow (0)
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monkframe
@
2011 Oct 7, 2:25am
What's sensationalist about it?
The fact is that even high-wage earners are living near the edge.
Sixty-one percent of those surveyed said if they were handed a pink slip, they would not be able to continue to make their mortgage or rent payment longer than five months.
We have the lowest savings rate so it does make sense.
It's not just savings, people who make good salaries buy expensive houses, at least here in the Bay Area. When you are spending $3000++ a month on your housing and you lose your job, that's a lot of money to have to come up with every month.
I don't know how people can handle the stress. My PITI is around $1700 a month and I hate it.
Tude, its the new people who came tp SFBA post 2000, who wrongly believed prices were always much higher in the SFBA.
It may be true it was only $100-200 a month but that was exploited to the max. So now they are stressed out financially.
My neighbor, from New York, paid 5x for his home in 2003 compared to my home I bought 10 years early. Both are similar in size and quality. Today, he is out of work due to a M&A deal. Unlikely to get a job real soon due to the position he held before.
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"Ten percent of survey respondents earning $100K or more a year say they would immediately miss a payment.
The survey was conducted on behalf of a financial consortium comprised of the Certified Financial Planner Board of Standards, Financial Planning Association, Foundation for Financial Planning, and the U.S. Conference of Mayors.
Sixty-one percent of those surveyed said if they were handed a pink slip, they would not be able to continue to make their mortgage or rent payment longer than five months.
Job loss has become the primary driver of mortgage defaults. With the national unemployment rate holding above 9 percent for five straight months and not expected to drop by any significant measure in the foreseeable future, the state of the labor market is one of the biggest obstacles for struggling homeowners and their lenders.
A number of programs at both the national and state level have been launched to assist unemployed homeowners, but so far the expected results haven’t materialized."
http://www.dsnews.com/articles/job-loss-could-put-one-in-three-homeowners-out-of-their-home-2011-09-30
If this unlikely scenario came true, it could lead to further declines in prices. But it seems more like sensationalist journalism with a cautionary bend.
#housing