The Charleston, South Carolina area is a great place to live or have a vacation home. The weather is great, the beaches are fantastic, golf courses are abundant, there are many historical sites, the architecture is unbelievable, the dining is unbeatable, and the people are the friendliest in the country. It is because of these reasons that I believe Charleston SC Real Estate is truly unique. I look forward to helping you with any of your real estate needs in Charleston, Berkeley, or Dorchester counties. Today’s article is titled:
Lifeline Needed for Underwater Home Owners
An estimated 4.5 million home owners owe 75 percent more than their homes are worth. That number is likely to peak at 5.1 million in June, affecting 10 percent of home owners and making them increasingly likely to just walk away.
''We're now at the point of maximum vulnerability,'' says Sam Khater, a senior economist with First American CoreLogic, the firm that conducted the recent research. ''People's emotional attachment to their property is melting into the air.''
Consultants at Oliver Wyman calculated that 17 percent of owners defaulting in 2008 –about 588,000– chose to default even though they could pay.
First American estimates that it would cost about $745 billion – about the same as the original 2008 bank bailout – to restore all underwater borrowers to the break-even point.
Doing so would be seen as highly unfair by many taxpayers, says Michael S. Barr, assistant Treasury secretary for financial institutions, but doing nothing would be another blow to a fragile economy.
As always, your thoughts, questions, or comments are greatly appreciated. Let me know if I can help with any of your Charleston SC real estate needs or questions.
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Sincerely,
"Carolina Joe" Idleman
http://www.charlestonscrealestateforsale.com
Source: The New York Times, David Streitfeld (02/022010)
