As many in America are losing their homes, they live in tent cities or
they live in their cars. There was a BBC news report about this issue.
See http://www.youtube.com/watch?v=eBIJH6--vsM

The problem came about because too many people believed that house
prices went up all the time and they had to buy immediately or else
they would be priced out.

Igor Chudov wrote:
- quote -

If they're bankrupt and unable to pay market rents, they can live in
Section 8 rental housing, qualify for food stamps, etc.


--
Steven L.
Email: sdlitvin[at]earthlinkNOSPAM.net
Remove the NOSPAM before replying to me.

"Igor Chudov" <ichudov[at]algebra.com> wrote in message
news:b6ednXuL9YRYarvUnZ2dnUVZ_g6dnZ2d[at]giganews.com...
- quote -

They learn that they shoudn't have done that. In today's markets everyone is
selling a monthly payment. Just look at the ads. New Cadillac CTX for only
$399/month. How much is that house going to cost me? Well, $2,500/month, how
much do you earn? $1,800/month but who needs food and utilities. You
qualify. Sign here.
http://www.jibjab.com/view/255549

I read in the local paper today about 93% find
rentals and 7% go on streets (for our state).

A fair number of people are walking away
because their house is under water.
Not because they cannot afford it.

On 2008-11-21 10:03:00 -0800, Igor Chudov <ichudov[at]algebra.com> said:

- quote -

There are always rental units available for people have a little money
to spend on rent, but not enough to keep up home ownership or to pass
the credit checks. Of course, those units might be rat-infested hovels
in the worst part of the city, And they are probably overpriced even
for their poor condition.

There was a very similar housing debacle in Britain in, let's see ....
1988 ? 89?, when loads of young couples had been tempted to go out and
sign up for a mortgage on a house much bigger than they needed.
House prices had been inflating to ridiculous levels for some time.
Then came the overnight collapse of the housing market, I mean it
took place amazingly
fast, and they were suddenly saddled with negative equity, and
unemployment hit a lot of them too, so all in all, lo and behold,
masses of homeless young couples, many with children, all over the place
looking for a home.
The government was forced to open up big hostels and shelters,
depressing places but at least you had a roof over your head.
Me, I'd since 1970 been in the business of letting flatlets, bedsits,
that is, a room and kitchen in big old houses I'd split up for
multi-occupancy.The city
in England I was in then, there was a large demand for such accommodation so I
did OK. But I'd sold out in about 1979 and when this big crash came
along, I'd wangled a council apartment, i.e. public housing, and being
disabled by then, was paying no rent or domestic tax!
You may imagine me back then sitting with my feet up, drinking Scotch and
listening to all this doom and gloom on the radio and laughing my
head off!
And I *think* I am well buffered against this present catastrophe,
because I only had about one third or less of my capital in the stock
market, and that was converted to Treasury bonds temporarily when I
dumped the Edward Jones outfit and gave my business to the investment
department of a local bank, Frost's Bank, in about early September.
These bonds are safe as houses, err, no, can't say that, well, safe as
the Bank of England! But they only paid me a measly 80 dollars for a
month....
So I am now having Frost's put the Treasury bonds money into municipal
bonds , and Texas school bonds and suchlike; as far as I know these are pretty
secure against the wild swings of the market we are seeing these days.
This (new-built) house is bought and paid for, I have no debts of any
kind, a government pension coming in monthly from Britain, it's an old
age pension: I reckon I'm fairly comfortable compared to many.
--
Ian
Ft Worth, TX

"PeterL" <po.ning[at]gmail.com> wrote in message
news:7e9225b6-da71-41c5-9447-99f889373ae2[at]c36g2000prc.googlegroups.com...
- quote -

Their family (extended). Section 8 housing? They could join the Army. Or,
they could scrape together a few bucks, head to Reno, and try their
crapshoot all over again.

On Nov 21, 10:03*am, Igor Chudov <ichu...[at]algebra.com> wrote:
- quote -

If they are quick they rent a place before their bad credit gets on
the report. Or...Homeless shelters? Their car?

Here's a question that bothers me. Let's say that a family borrowed
[too much] money. Due to job problems or some such, they run out of
money, default on the mortgage, get foreclosed and kicked out. Where
can they go? What if they do not have money for rent (due to the
above)? What about their credit? I thought that landlords check
tenants' credit and would not let to people with bad credit? So what
happens then?

i