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Blob

Smart Reasoning:

C&E

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Qaagi - Book of Why

Causes

Effects

a loan – Five and six year loanscausenegative equity

a number of factors , including : Falling house prices(passive) can be caused byNegative equity

falling home prices , an increase in mortgage debt , or both(passive) is caused byNegative equity

the recession and falling house pricesresultingin negative equity

Both loops ... falling home pricesleadto negative equity

investors ... falling house priceswill leadto negative equity

falling property values , when a person buys a property using a mortgage and the value decreases afterwards(passive) is normally caused byNegative equity

Several factors are convergingto createnegative equity

Only Home Loan Falling house pricescould leadto negative equity

Some or all of these factors can helpcontributeto negative equity

Negative Equity Falling house pricescan causenegative equity

Lower house pricesmay leadto negative equity

just because home prices fallresultingin negative equity

the effects of falling house prices and rising mortgage ratescould resultin negative equity

the continuing appreciation of house prices ( or ... at leastpreventnegative equity

loan lossesresultingin negative equity

In other words , the book value of their liabilities was greater than their assetsresultingin negative equity

The home price declines to datehave resultedin negative equity

A property market crashresultingin negative equity

Subject to mileage and condition , return the car with nothing more to payresultedin negative equity

After the house purchase , the value of the home decreases below the value of the amount owed on the mortgagecausingnegative equity

The rebound in home prices , which is restrained by tight credit conditions and the decline in home valuesresultingin negative equity

Those who own property are caught in a catch 22 ; property taxes and a declining population have pushed property prices downpotentially creatingnegative equity

since home prices have dropped so dramaticallycreatingnegative equity

Any deterioration in the value of the homewill causenegative equity

Accumulating losseshave resultedin negative equity

the best waysto preventnegative equity

Declining property values in your area may add to your situationresultingin negative equity

loss of property valuecould createnegative equity

A recent crash in the property markethas ledto negative equity

Falling house prices and inflated interest rates could cause fluctuation in loan to value ratiosresultingin negative equity

home price declines , reduced income or unemployment(passive) created bynegative equity

Declines Backlogged foreclosures , severe oversupply , andtriggerednegative equity

certain price declines(passive) created bythe negative equity

Outstanding loansresultin negative equity

a decline in house pricesleadingto negative equity

collapsing house prices(passive) caused bynegative equity

As such , the fall in house prices neededto triggernegative equity

very high - interest ratescreatingnegative equity

the perfidy of the Wall Street Gangs and the Congress persons responsible for oversight of the housing industry who DIDN’T. Hence , the mortgage mess(passive) caused bynegative equity

The foreclosure crisis(passive) is being caused byThe foreclosure crisis

to defaults and foreclosuresleadingto defaults and foreclosures

particularly the problems(passive) created byparticularly the problems

problems for both you and the lendercan potentially causeproblems for both you and the lender

problems down the roadcan causeproblems down the road

major problemscausedmajor problems

a few problems for you as a homeownercan causea few problems for you as a homeowner

to delinquency , foreclosure and further declines in home priceswill leadto delinquency , foreclosure and further declines in home prices

problems for households and bankscreatesproblems for households and banks

to the decline in inventorycontributingto the decline in inventory

to strategic defaults and a potential death spiral for housingleadsto strategic defaults and a potential death spiral for housing

real - life problemscausesreal - life problems

additional problems for householdscreatesadditional problems for households

misery and hardship for many homeownerscreatedmisery and hardship for many homeowners

particular problems for those people who have to move housecan causeparticular problems for those people who have to move house

many of these sellers from moving up to the house of their dreamshas preventedmany of these sellers from moving up to the house of their dreams

people movingpreventspeople moving

in bank repossessions and significant financial problemsresultingin bank repossessions and significant financial problems

people to strategically default on their mortgagescan causepeople to strategically default on their mortgages

people to foreclosure when they are facing financial difficulties at the same time and are having trouble servicing their debtwill ... leadpeople to foreclosure when they are facing financial difficulties at the same time and are having trouble servicing their debt

In Defaults January 5 , 2012ResultsIn Defaults January 5 , 2012

widespread default(passive) caused bywidespread default

to termination through defaultleadsto termination through default

Mortgage default(passive) is typically triggered byMortgage default

to bankruptcy and foreclosuresleadsto bankruptcy and foreclosures

from a decline in the value of an asset after it is purchasedcan resultfrom a decline in the value of an asset after it is purchased

the horrors of endowment mortgages that many people in the UK are now putting up withpreventsthe horrors of endowment mortgages that many people in the UK are now putting up with

to distressed sales ( short sales or foreclosures ) , and losses for lendersfrequently leadsto distressed sales ( short sales or foreclosures ) , and losses for lenders

a number of problems ... especially when the mortgage needs to be refinancedcan causea number of problems ... especially when the mortgage needs to be refinanced

huge problems if you are struggling to make your monthly repaymentscan causehuge problems if you are struggling to make your monthly repayments

a real problemcreatesa real problem

to additional “ walk aways ” and foreclosuresleadingto additional “ walk aways ” and foreclosures

the gap(passive) caused bythe gap

supply problems and higher pricesmay causesupply problems and higher prices

to strategic defaults , short sales , loan modification applications , bankruptcies and many other events that can affect a real estate marketcan leadto strategic defaults , short sales , loan modification applications , bankruptcies and many other events that can affect a real estate market

me more and more stressis causingme more and more stress

to a rash of defaults by even prime borrowersledto a rash of defaults by even prime borrowers

from bad loans made during the real estate bubbleresultingfrom bad loans made during the real estate bubble

people selling their propertiespreventedpeople selling their properties

a drag on mobility and home - price appreciation as people have gotten stuck in their homeshas createda drag on mobility and home - price appreciation as people have gotten stuck in their homes

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Smart Reasoning:

C&E

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