What We're Hearing

Just because a consumer is underwater on his mortgage does that mean he'll go into default? Anyone with a brain knows the answer to that question is no. Consider the case of the Las Vegas metropolitan statistical area (MSA) where according to First American Core Logic, 69% of homes have negative equity. If all those homeowners with 'underwater' loans handed the keys in think about what effect it would have on the nation's delinquency crisis. A consumer who is employed but has an underwater loan can ponder this question: I have a job and can make the payments but do I want to screw up my credit score by going delinquent? Meanwhile, I can't stop thinking about the federal and California tax credits for home buyers. Late last week new figures showed that home resales posted their largest monthly increase in 10 years. One of the chief reasons: first-time homebuyers are now acutely aware of when these tax credits expire. Some Realtors in California (and other states) have little signs in their window reminding home buyers about the tax credit...