Underwater Mortgages Affect the Young 27

home mortgages underwaterSo here’s a shocking little nugget of information (can’t you just hear the sarcasm dripping?): Younger borrowers are more likely to be underwater than older borrowers.

I know – crazy, right?

Around 50% of borrowers between 30 and 34 were underwater as opposed to 28% for those over 50. Makes sense though, doesn’t it? If you’re older you’ve been paying down your loan longer and are less likely to be underwater.

But despite the fact that this bit of information is so obvious the implications of it escape most people. If you’re pushing short sales, or otherwise making your own way in the real estate business, you need to know who to focus on.

Are you cruising the golf courses looking for people to help? Are you checking the early-bird specials for a listening ear?

Probably not, right. You need to focus on the younger segment of the population. You need to find the people who need your help the most. Little tips like this can revolutionize how effective your business is.

So don’t miss out on great opportunities by spreading yourself too thin. Concentrate on where you’re needed most, and be a servant.

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27 thoughts on “Underwater Mortgages Affect the Young

  • James Eisberg

    Younger folks in general are getting the fuzzy end of the lollipop because there’s no equivalent to AARP for under-50 persons. The National Assn. of Workers, aka the AFL-CIO, has been under attack since the 1920s, but that attack has been winning overwhelmingly since the government joined the attack by putting anti-labor officials in agencies designed to advocate for labor and by dismissing air controllers (see Wisconsin for a more up-to-date example). There is a National Taxpayers Union, but it does not advocate for fairness, which would include a near-confiscatory estate tax to pay off the National Debt and to avoid further creation of financial classes in America (existence of which is proved by accusations of “class warfare’). There is no Association of People Who’d Love to be Working With Dignity. So younger folks start with student debt instead of Pell Grants or G.I.Bill grants, and watch as tax and employment policies favor the rich and the old over the poor and the young.
    As a Realtor without a huge staff, I have to go where the money is, and try to convince well-off over-50 folks to buy homes big enough to house boomerang kids and grandkids–after all, the kids are more likely to visit you in your retirement home if they live in the same home.