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I believe we are only in the third inning of the current down cycle. The prime borrowers are now feeling the pinch and foreclosures will continue to drive prices down across the state. Once MA home prices drops a little more, many of the long haul commuters will begin looking to move closer to work where they can find better priced homes and save on gas. This will promote further declines in prices here in NH. We really have a long way to go down.. I am saddened that so many will loose their homes, but as a society we will have good reason to teach our children how to read graphs and historical trends. We need to realize how to make our own decisions and not rely on what TV or the paper says. Other issues looming in the back ground include the increase of credit card debt and equity loans. Whet happens when these start to fail in greater numbers. Add to that the increase in companies giving access to retirement accounts (debit card for your 401K) to pull cash out of. You start to realize that we are in for a long fall... live simple and enjoy walks and the simple things in life again. With all the junk reality TV shows out there sucking up the minds and time of people, you would think the housing crises would make for a good few episodes...
- Jay Misty, Pelham

Like I said in an earlier post a few weeks ago folks! Buckle up and hang on for the ride of your life! I live from check to check and barely hanging on to my "prime" mortgage. It's only a matter of time before "I" see the sheriff at my door to take the keys :-( I don't expect that there will be help other than a few folks to help me pack my bags and give me a ride to the shelter. :-( Yeah I know what your gonna say!
When I bought my house, gas was 1.80 or so a gallon and heat oil was 99 cents. Now I just look at my furnace and poof!...there goes 600 bucks. I paid that for rent just a few years ago.
Let's face it, Guinta will have to raise taxes 15 percent just to get by and still layoff half the city workforce! You cant collect taxes from folks who are losing their homes. Wake up Manch Vegas and smell the Starbucks!
- Tom, Manch Vegas

OK all I have to start off with is enough. I don't inderstand why everyone if finding the need to call others names and place blame back and fourth. Many people were swindled into unconventional mortgages at a time when the housing prices soared. Let me tell you going into foreclosure is not a nice thing for anyone.
On a personal level I have been in foreclosure, it was not because I bought a house that was out of my price range, it was not because I was a deadbeat. It was due to circumstances that I could not control at the time. My husband left me and my kids in my home, now I was struggling on one income trying to make ends meet. Since then I have remarried and I still have my house only because my lender worked with me, however with the rising costs of food, gas, and basic living expenses I am again finding myself in the position of having a difficult time paying all the bills. I do not have any credit cards and I do not have a car payment, however I do drive for work and the cost of gas is greatly affecting my income, not to mention the fact that my property taxes have doubled in the past 5 years. I paid 125,000 for my home, which compared to some other people, I am in a better situation, but I am paying taxes on an evaluation of 230,000. My house would never sell for that much considering it is 960 square feet in downtown Manchester. The crisis is real, If all you people want to blame others and call them stupid think again. These things can happen to anyone, no one plans for cost to double in such a short period of time and unfortunately things are very different then they were in the past.
- Jen G, Manchester Nh

Jay G:
As you stated the Mortgage Forgiveness Act of 2007 spares homeowners from paying income tax on a "short sale" BUT only if the money borrowed was used to buy a home and for improvements.

If the money borrowed against the home was used to pay credit card bills, vacations, etc., then federal income tax will be owed.
- lynn, kittery, maine

For isabelle in manchester, the mortgage was cheaper than renting and a warning bell didn't go off in your head? Hellooooo! McFlyyyyy!
- Jimmy B, Holbrook, MA

Housing prices are still too damn high!! still out of touch for what the average American makes. People on the fence over buying now....DONT DO IT!! You will suffer losses imedieatly.and for at least two years.
- Steve, Nashua

What about divorce? My friend is going through a divorce. He left the house, leaving the responsibility solely on her. The value of the house is less than what they owe. She is going to be strapped with paying the difference, when/if the house sells. Does this make her a deadbeat?

This article is talking about extenuating circumstances.
- DJ, Amherst, NH

Mortgage Brokers are Sales People - not Financial Advisors. There are good ones and bad ones. What's next - class action suits against Car Salesmen who sell Yukons and Tahoes b/c they didn't warn you that gas prices were going to go through the roof? Personal responsibility is non-existent these days. ARMs are a gamble and not everyone can afford to gamble, but those that can afford it should still have the right to take that risk. They have a purpose, but it's just not for the avg homebuyer.
- MS, Kingston

Michelle, sorry to hear your troubles I know it is tough. I do however, believe you may be over reacting on the radon issue though. Punching a hole in your slab and installing a pipe with power ventilator to outside should not cost 7-10K. Water radon has not been proven to be the problem you mention (how did we all survive years ago) and many have created a cottage industry on these fears. Hate to say though, if you are making payments the bank has no incentive to deal with you. You may want to miss a couple payments to get their attention if you are seriously upside down in your mortgage and eventually let it go...In 2 years you could re-qualify for a real estate loan if all else is ok...good luck.
- mike, hooksett

To Tom in Manch, yeah again give me a break, I work for the state and you know what, I can barely afford to live on day to day bills and am stressed about money on a daily basis, so dont group all public sector emplyees into one category, just because you see that people in Manchester make alot of money does not mean all of the public employees do, as a state employee does not mean I am not your average everyday hard worker, makes me sick to read comments from people like you Tom
- Brad, Hooksett, NH

How about this....I put my home on the market in fall 2006, after my father suffered a stroke and felt the need to be closer to he and my mother, who doesn't drive, to help out. I was excited when I received an offer in February 2007 but when a thorough home inspection was done it came up with elevated levels of radon in the air and drinking water. The couple backed out in fear of this. My broker suggested I remedy the problem by having the radon mitigated. Through research I learned it would cost $7,000 to $10,000 to mitigate. In the meanwhile, values declined I now had to lower the price of my home by $30K. When I looked into refinancing to cover the cost of mitigation I did not have the equity. I called my insurance company and radon is not covered. I could not stay in the home knowing I was exposing both children to the radon. In researching, radon is more damaging when exposing your skin to it, which may cause skin cancer or lung cancer by inhaling the steam from the water in the shower or bath. It is more effective when it is heated. I moved out and rented it short term while I kept it on the market. No other offers came about until September of 2007, the potential buyer being aware of the radon just loved the house for the land. Because her offer is $25,000 less than I owe on the mortgage Countrywide needs to make the decision. This buyer has cash and no other contingencies and can close in 2 weeks......I have been waiting for Countrywide to make a decision on this for 8 months. When I hear that mortgage companies want to avoid foreclosure at all costs, I tend to disagree.
- michelle, chester

I hate to say it, but this downturn will be much different and longer than the previous. Energy prices will not go down... and most likely will increase... as Iran places more pressure on OPEC. And the Boomers are approaching retirement age, so the Social Security surplus that has partially hidden our budget deficits will be no more.
- John Edward Mercier, Belmont

The same scenario just happened back in the late 80s early 90s remember? How about the tech bubble - late 90s?? When prices rise far beyond historical average appreciation, DON"T BUY! Average median home price in NH in 1998 was far below 200K and just a few years later you are going to buy in the 300k+ many for 30 year old homes. Cheap interest rates have hurt the market for too long but all you had to ask yourself was if I can afford a payment on a 300k loan at 5.25% (historic lows), will another buyer be able and willing to finance the same amount at 7 or 8% (normal averages)? Huge difference in monthly payment. People got caught up in how much do you want to pay MONTHLY instead of negotiating down the PRICE.
- mike, Hooksett

The current mortgage mess reminds me of working for Ma Bell in the early 1970's. We had a ton of overtime and were forced to worked at least 20 to 30 hours of overtime per week. Guys would fight over who had the most seniority just so the junior man could be forced to work the overtime. Several years later the overtime dried up and one of the old timers told me that a lot of guys would no longer be friendly because "the bubble has burst". He told me far to many people never plan and always live on "the bubble" and when that bubble pops they find they can not afford to live on what they really make. This is what has happened to far to many people because far to many people gets their kids whatever they want and get "it" because everyone else has "it". Most people have lived from paycheck to paycheck and run up their credit cards. They then do a refinance and pay off the cards but continue to use them until they get maxed out again. They have no money in savings and they have no wiggle room so now they are in deep trouble. By the way in 1975 I was laid off along with 7,000 other Ma Bell guys.
- Don Armstrong, Henniker NH

Let's not forget that many homeowners went to bankers and mortgage brokers asking them "how much can I afford?"

For almost all Americans, home ownership (especially the first time) is daunting. There was a time, less than a decade ago when citizens could go to their "trusted" banker and the banker would advise the person.

In today's mortgage marketplace, caveat emptor rules the day. Gone are advisor and citizens are left with used car salespeople turned mortgage specialist that specialized in making huge commissions for themselves and financial misery for anyone that came to them.

And don't bother lambasting me that individuals should be more responsible. They should, but Nationally this arguement has already focused on the "dummies" who got themselves into this mess and has ignored the shady sales practices that these giant finance companies foisted on their sales force. Many of whom needed no help swindling their fellow American.
- Bob, Nashua

To Pete and company,
i have 3 children so buying a condo was not an opt. secondly i never said anything about being behind on my mort. or not being to pay for it. all i said is we were looking to refi in 2 years and i did do research and did bid on 4 other houses before i got this one. and my taxes and ins are not that high. i guess i must be dumb for trusting people who i thought were looking out for me. is name calling really called for?? did i call anyone else dumb. real nice.
- isabelle, manchester

I don't think anyone anticipated the large rise in the cost of living. Unfortunately, many people felt comfortable spending a large portion of their income on housing.
I think we will end up in a depression.
In the past ten years, there were chances to let a medium correction of the housing situation take place, however the Federal Reserve chose to ignore it. This led people to believe there would be no end in house price increases. Unfortunately, the situation turned ridiculous. Now the tried and true "let's print more money" to save everything, has lowered the value of the dollar and everyone we trade with knows it. This is the reason that prices are rising. But now, people can't spend to the limit of income for housing because they will literally starve, freeze and walk if they do.
People who think now is the time to take advantage of the situation should realize this before they jump in. Higher heating , utility, property taxes and transportation will now take over where high mortgage payments used to be the major living expense.
This is a major financial crisis and is no laughing matter for anybody.
- Steve, Raymond

I'm all for the american dream But one you can afford!!! The majority of borrowers wern't looking for this they just wanted to keep up with the jones
- Jennifer Khashaba, Manchester NH

whoo hooo - here comes the influx of forclosed cheap homes in NH. looks like it is time for us smarter shoppers to look around and see who is letting go cheap before bank takes what they can get for it..
happy forclosure shopping all,
rates are low too, so it is just about time...
- Travis McGeraldsen, Concord nh

It sounds like Tom and Mike want us taxpayers to bail out overspenders. We should all sacridice govt services because some people can't live within their means. Let's say no to a 1-3% taxincrease b/c this is obviously the last straw for these folks??? I love how Tom and Mike missed the part about rising fuel costs. Did I miss the story where all law enforcement agencies went to electric fleets? I guess materials costs that rise for us don't affect DPW for roadwork and salting. The solution is not to force teachers and govt workers into foreclosure (not enabling them to keep up with rising costs) simply b/c we can vote their COLA increases down. Boy, that would surely help the state of NH.

I'm not sure whe the American dream turned from owning your own home to owning a home comparable to the Jones'.
- Bryan, Bed

To Isabelle - you state "...we bought a small 4 bed cape " because you were looking to "...like the American dream," and it was cheaper than renting. My wife and I did research before we made our purchase. Sure, a mortgage is cheaper than rent. But what about the taxes, other utilities, and other hidden expenses?
My wife and I did think, and instead of owning a 4 bedroom cape, we live in a two bedroom condo. Sure, we could have spread ourselves really thin and purhcased a four bedroom home and a few acres, but then we would have been in your shoes.
So, you didn't think and didn't prepare. My wife and I did think and prepare. WE should pay for YOUR lack of insight and research? Like Mike R in Bedford states, why should I be punished and bail you out? Wait - lately that seems to be the American way. Looks like you got your dream.
- Peter, Concord, NH

Isabelle, I hope you're a ringer. Because nobody could possibly be that dumb. Read my previous comment.
- sandy, thornton

i bought a house with an arm rate with the intention to refin. in 2 years like i was advised to do cause we have money down but used it on closing cost. ect..
how was i to forsee that the market was going to crash like this and the proprety would not value the same after a couple of years?? with all the updates we made. our loan has adjusted 3 times now in the 2 and half years we bought. and is set to do it again now in aug. we are up to 9.75% now. we bought a small 4 bed cape cause the mort. was cheaper than rent. i think there are others out there that did the same and now we all have to pay for trying to like the american dream.
- isabelle, manchester

Mike in Bedford,

I doubt that the majority of the 17K payments past sue are from people living in large houses. I live in a small ranch in bedford and I'll tell you what, if I loose my job, I wouldn't be able to aford my mortgage. I have no debt other than my mrotgage too. I am not foolign, but sometimes bad times hit even the wise. Whay are you so angry>
- Chris, Bedford

I propose two ideas to help struggling homeowners. (1) reduce taxes on families in a huge way and (2) lower the demand on lower income housing and supply-and-demand forces will ensure lower income housing becomes more affordable to families. you ask how? (1) there are several ways but a big one is to bounce out all the illegal aliens on their ears. you can take my word for it or find the research on the web but some $11 to $22 billion per year PER YEAR! is wasted on welfare for illegal aliens. over $2.5 billion per year goes for Medicaid for illegals and $12 billion for primary and high school education of illegals. then we waste a cool $1 billion a year on prison for illegals and some $40 billion a year trying to deport illegals that should not be here in the first place. anyhow easy web searches show a total of over $300 billion per year goes to the illegals problem. with only 218 million adults in the USA my old school math shows that is some $1400 per adult per year. that would surely help struggling families. (2) kick out the 8 million plus illegals estimated here by the US immigration bureau and you can free up some 2 to 3 million low income housing units. supply-and-demand will send the cost of low income housing down. america, you are being infiltrated and when the liberal democrats give the illegals amnesty or citizenship guess who they are going to vote for? guess which kinds of taxpayer funded programs they will vote for? guess what will happen to border security when they get to vote? and for you bleeders who think i am cruel just remember that america sends out more foreign aid money and more missionaries than any country in the world. stop the invasion or our kids pay the consequences.
- Tony, pembroke

Sandy, Brad .. the article is titled "Mortgage crisis hits prime borrowers in NH" Prime borrowers are not deadbeats, they are hard working, pay the bills on time, folks. And they are getting hit with huge increases in heating oil, loss of jobs, loss of income, and local governments who want more and more of their money in property taxes. Somewhere there is a disconnect. If the community is hurting, and folks are losing their homes, how is it that I read over and over that public sector employees want more and more in pay and benefits. There is a connection, whether you want to admit it or not. When an honest, hard working homeowner can't pay for heat and then reads that the new blah blah blah at the local municipality is being paid some exorbitant amount of money, it gets one's attention. And it should.
- tom, manchester, nh

Yeah, I really feel sorry for these people. I knew I couldn't afford a house at the current market prices, so...I didn't buy one!

Why do people think they're entitled to a house they can't afford if their income drops or they become unemployed? Hard reality check...they're NOT!

So they were foolish. Foolish should hurt, it's how you learn not to do foolish again, like when, as a child, you touch something hot and it hurts.

No government bailouts. Sure, I'd like to be living in 5000sq/ft of McMansion, too. But I wisely am not. Why should I be punished for being frugal by being forced to bail out the entitlement, spoiled-brat crowd?

Buy a house you can afford, or DO NOT BUY ONE! Simple enough.
- Mike R., Bedford

I agree with Brad, public sector wages have nothing to do with this article. I thought it was interesting that the article did not specifically state WHY people were having problems other than cuts in work hours/overtime....and credit card bills. If folks were including their OT hours as part of their base pay - shame on them AND the mortgage lender... that's no, no. If people simply bought more house than they could afford because they had to have it all and have it now - then continued to run up credit cards, etc. then, they got what they deserved and I have no sympathy. Anybody who bought a house in the last couple of years, many of them with no money down, was asking for trouble, because the signs of a housing market bust were there. All you had to do was read the papers, follow the news and just look at the same houses appearing in the real estate ads for months at a time. And if they didn't know what an adjustable rate mortgage was, they shouldn't have signed the papers. Getting legal advice on a real estate transaction only costs a couple hundred bucks and is worth its weight in gold.
- sandy, thornton

Tom, please give me a break, this article has nothing to do with the public sector wages, way to throw this argument in to a mortgage article. Teachers and other public employees are not immune to the rising costs that everyone else is dealig with.
- Brad, Hooksett, NH

Let's not foget these same people who are now struggling under increased prices / costs for gas, oil, food, are the same people ( subprime, alt-A, or prime ) who PUTCHASED MORE HOUSE THAN THEY COULD AFFORD. Period. If you stretch your paycheck to the max just to afford the teaser payments, don't cry when the payments go up and your underwater. If you didn't know how an adjustable mortgage worked then you shouldn't have signed the note.
Plenty of people bought a house with the same mortgage products but not SO much that it consumed a huge % of their after-tax income....and they are dealing with the increased costs and still paying their notes, b/c they didn't overspend in the first place.
- Jim S, Manchester

When you buy diesel at the gas station you are paying about 18 cents in road use tax. As you are not using this fuel on the road you may be able to get a refund of the tax you paid. The form is RT-122D Refund Application Tax Paid Special Fuel Only. The state website it can be found at is here -

http://www.nh.gov/safety/divisions/administration/roadtoll/forms.html

However, I’m not sure that an oil burner would qualify. Maybe someone with more knowledge about this will chime in.
- JR, Manchester

The PUBLIC SECTOR seems to be living in a PARALLEL UNIVERSE, where they somehow think they can keep spending MORE of THEIR SERVANT'S MONEY, regardless of whether THEIR SERVANTS are making more money.

ENOUGH ALREADY! VOTE DOWN ALL TAX INCREASES UNTIL "WE THE PEOPLE" START MAKING MORE MONEY!

VOTE OUT all those who propse that WE THE PEOPLE to have to pay more taxes!
- Mike, Concord

And it isn't going to get better .. as long as there is a huge disconnect between the public and private sector ,, and local taxes continue to rise,, the foreclosure mess will continue. Think about it for a moment,, at the same time heating oil has gone up %100 percent, the municipal employees want higher wages and benefits. The teachers are growling .. .. the on and on and on ..
- tom, manchester, nh

Please note that this article incorrectly indicates that in a "short sale" the homeowner would owe income tax on the difference...that is no longer correct. President Bush signed the Mortgage Foregiveness Act of 2007 sparing homeowners the tax burden associated with canceled mortgage debt.
- Jay G, Portsmouth