Sunday, March 9, 2008

Why now is not a good time to own a house

To ever say "it is not a good time to own a house" is very questionable statement. The statement in this case is just a very generalized hook to get you thinking, and it probably is not true for many homeowners. A matter of fact, only a few home owners would say this is true, but don't chalk our landlord as one of them. If you haven't read the previous post (look down) then you wouldn't know our landlord was having problems. He is having problems with loosing money on his rental unit. Now when he tries to get an increase in rent, the tenant has lots of power, especially one who has a good credit score and the ability to buy a cheap house in a depressed market. Or we can go to one of the many vacant houses for rent on the market.

On a quick related note, I was talking with a source (who asked to be unidentified) who is starting to see an interesting phenomenon around the East Valley. Many people with good credit but owing more than there house is worth are buying in this depressed market and then filing bankruptcy. The expensive house falls into foreclosure while they keep the newer house with the cheaper payments and there is nothing the banks or credit card companies can do. Smart??? I guess.... Dis-honest??? definitely!! You do have to live in the house for seven years, and if you are late on any payments you have no recourse as the bank with attack you for all you are worth. But it is happening.

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