Another Great Depression for housing?
Fred Stevens, a policeman in Ohio, saw his
house value drop from a peak of $103,000 when he refinanced in 2006 to a current low of less than $40,000. "I could have walked away, but wanted to do the right thing."
November 2010 housing prices declined more in the current market than during the Great Depression, according to Zillow.
Whether prices have surpassed the price drop or not, individuals are certainly feeling the pain.
Stevens has been trying for the last two years to work out a
short sale agreement with the help of
American Homeowner Preservation (AHP), but the bank won't agree to the terms. Stevens faced financial difficulties following a divorce, loss of parent and other medical issues.
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The bank did agree to a
short sale of $43,000 less $8,950 for repairs plus other
closing costs and back taxes or a net price of just $28,883, but it refuses to agree to a key part of AHP's program, according to Jorge Newbery, Director of AHP. AHP finds an investor to
buy the home and signs a lease with option to buy with the homeowner.
Read the full article
here.