>> Doug Henwood wrote:
>> It lowers the willingness, not the ability.
>Carrol Cox <cbcox at ilstu.edu> wrote:
> It would also add a complication were they to want to refinance for any
> reason -- either ability to pay _or_ to finance home improvements.
It also presents a problem if you need to move for a job relocation. Even if you can find a seller willing to pay, but in need of financing, most banks seem to be much stricter with appraisals. I don't know if it is the same way across the country, but since there are fewer home sales and more of that percentage is forclosures or auctions, etc. it makes it difficult to gauge what the house should be worth. We just sold in may to relocate, but we likely would have been stuck if we hadn't found someone to pay cash(!) Most people aren't so lucky. Thus the people who are out of work, unable to pay have fewer alternatives: can't move to find a job if can't sell; can't refinance since bank will not allow it to take a hit.
The lower property taxes Miles mentions might help some for a few, but will likely only excerbate this in even the short run: my university may have to raise tuition again to cover state tax shortfall, making any savings on other taxes more of a wash for anyone with kids in the state schools.
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