When you hear all of this talk about how so many families are being kicked out of their homes (and yes, I’m sure there are some real sad stories out there) it’s worth keeping this sort of thing in mind:
Ohio State study: Mortgage losses on owner-occupied homes lower than assumed
COLUMBUS, Ohio – Homeowners who are struggling with mortgages for their own residences are a relatively small part of the overall mortgage crisis, according to results of a new nationwide study of consumer balance sheets.
The study estimates that losses on first mortgages for owner-occupied homes may range as high as $180 billion.
While that’s a large amount, it is not catastrophic, said Randall Olsen, co-author of the study, professor of economics, and director of the Center for Human Resource Research at Ohio State University.
Instead, the results suggest that the biggest losses in the mortgage crisis are not for owner-occupied homes, but for commercial real estate loans, and loans for houses bought as investments or built on speculation, Olsen said.