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Owe More Than Your Home Is Worth?

Las Vegas realtor Steve Hawks discusses the Las Vegas Real Estate markets recent drop and the effect on Las Vegas homeowners. Steve Hawks discusses the new phenomena of mortgage walkers "people who walk out on their mortgage because they are owe more than than home is worth. Hawks states that there are several reasons for the recent unprecedented drop in the Las Vegas real estate market.

The first was the rampant puffed up price cash back fraud, the second factor was the predatory lending; consumers being put in higher margin loans even though the loans were not the best fit for their situation. Thirdly homeowners making offers and purchasing Las Vegas homes based on fraudulent over inflated prices believing that the comparables were purchased by a good faith buyer. Fourth factor the home owner thinking that the Las Vegas real estate would continue to rise. When the Las Vegas real estate market dropped and did not continue its unprecedented appreciation the homeowners who owed more than their home is worth and their adjustable rate mortgage is adjusting can not refinance into a affordable loan because they have no equity in their home.

Las Vegas realtor Steve Hawks also states if a homeowner is in the situation where they owe more than their home is worth and can not afford the payment or refinance and need to short sale or be foreclosed on the homeowner should not let this get them down or depressed. Their situation has many outside influences that drastically effected the value of their home which were unprecedented and mostly unforeseen in previous real estate booms.

The high number of fraudulent loans, the predatory lending and the major financial institutions hedging their bets on the American homeowner, in the aspect that the Real estate market would continue to rise and the loans the lenders were giving under favorable short term terms but horrific long term terms would be paid off and refinanced out of the equity from the appreciating market. Unfortunately the appreciation stopped and an actual reverse in equity began.


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