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Robert Shiller – “Housing Will Be More Volatile…Not Likely To Be Over Quickly”

July 24, 2009 By Leave a Comment

Robert Shiller, Yale Professor and cofounder of the much watched Case-Shiller Index, was interviewed back in February this year at a conference. This video clip runs for a few minutes. He’s been very accurate on housing and really is as good as anyone on the current crisis. He makes an interesting point that housing will run the risk of being even more volatile in the future and that this current housing problem will not be over quickly. Given that this clip is now almost six months old, it seems that he was right with that last statement.

Shiller was recently interviewed on CNN two weeks ago. He comments on commercial real estate and also makes note that the millions of people who have lost their life savings in this housing market bubble and crash, “are not going to forget that they were wiped out” due to their home.

Embedded video from CNNMoney Video

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“SAFE AT HOME: Preventing Foreclosure Documentary” by Twin Cities Public Television (TPT)

July 24, 2009 By Leave a Comment

The Minnesota Home Ownership Center has some very good materials on its website for those who are trying to deal with foreclosure.   As I mentioned in a previous blog post, they have some great information about the new postponement law that allows homeowners to delay the Sheriff’s sale for another 5 months.  There are some specifics that must be followed so be sure to check out the site or an attorney for those details.

Twin Cities Public Television (TPT) and the Minnesota Home Ownership Center have teamed up to produce a documentary entitled, “SAFE AT HOME: Preventing Foreclosure.”   It will demonstrate the foreclosure counseling network that is available to Minnesotans and it will describe efforts underway to help troubled homeowners and neighborhoods deeply impacted by the foreclosure problem in Minnesota.

Click here for the details as to when the show will be airing in the Twin Cities.

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Strategic Default – Walking Away From Your Home

July 24, 2009 By 1 Comment

The University of Chicago’s Booth School of Business and Northwestern University’s Kellogg School of Management just completed a recent study of homeowners who default on their mortgages.  The San Francisco Chronicle published some of the details of this report.  The article is available at SFGate.  Apparently the study found that 26% of the defaults are categorized as “strategic default.”

Strategic default involves a homeowner deciding to not make the payment and “walk away” even though they have the financial wherewithall to continue to make their mortgage payment.

Several months ago there was much discussion about “walk aways” but not a lot of proof.  This study now may lend some credence to the idea that there are people who can afford to make their payments, but because they are so far upside down on their home with no hope of recovery, they choose to walk away and default leading to foreclosure.

Foreclosure

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