Admitting one has made a serious financial mistake as an adult (who is
supposed to know better) and especially as a parent (who is supposed to teach
children about money) is a source of great shame for most people...
So it's not surprisingly many folks are keeping mum about their housing woes. As the the rates of foreclosure in parts of the country
skyrocket and unravel local economies, many cities are predicted to see house values decline by as much as 26% over the next 5 years. These cities include Seattle, Portland, Orlando,
Greater Washington, D.C., Baltimore, Sacramento, Las Vegas, and others.
Say you elected an adjustable rate mortgage (ARM), a few years ago when appreciation seemed a sure thing and low monthly mortgage payments in the beginning of your term might have gotten your family into a bigger house, or a nicer area than you'd have otherwise been able to afford. Or, you refinanced or bought into an equity line to pay for kids' schooling, or vacation, or car, or remodel. Or, perhaps you bought a house because it was a good investment rather than a lovely place to live.
Many of us had our closest encounter with paper wealth as a result of the double-digit appreciation of the late-90's and early 2000's... So maybe we deferred saving for retirement or other smart uses of our money in favor of betting it all on our housing.
As the housing slump marches on, economic insecurity will hit many of us very close to home.
