Real Estate
If you own your own home, you’ve probably noticed this recession in more ways than just the rising food costs, and the soaring gas prices. Home values have decreased. Drastically. In over twenty cities across this country, home values have dropped thirteen percent, and foreclosures are at an all-time high. One out of every 194 homeowners in this country got a foreclosure notice in just the first quarter. That’s double the amount from 2007, for the whole year! On the bright side, if you’ve got a shiny credit record, go buy something. You’ll get it cheap, and the banks will throw money at you.
On the other hand, the gas prices are killing you too, and you’re not sure if anyone will EVER move in next door, since the number of vacant homes is also at an all-time high, which means that your property value will go down, and you won’t be able to remodel the kitchen on a home equity loan, gasp. Never mind. You’re right. Even the few people in this country with good credit aren’t going to give this economy a speedy turn around. Check, please! So, Bank of America bails out/buys Countrywide for making terrible lending decisions. Actually, about $893 million (that they lost at the beginning of the year) in bad lending choices. Smooth move. Now my landlord works at Countrywide, and if I’m even a day late on my rent, she’s calling with the unmistakable sound of panic in her voice. Once bitten…