Are Obama's Mortgages Underwater?

[Geee]

American Thinker:



Should the Obamas walk away from their million dollar mansion? Should they short sell?

With the recent decline in housing prices, the Obamas' Chicago mansion could be worth less than the value of their mortgages.

In mid 2005, the Obamas purchased their dream home for $1,650,000 in Chicago's Kenwood area.　 Since then, real estate prices have dropped considerably and their mortgages may be underwater like millions of other Americans who bought real estate before the housing bubble burst.
The Obamas financed their home by borrowing $1,320,000 from Northern Trust Company. The loan balance on that mortgage would have declined to about $1,205,000 given the terms of their loan (fixed interest rate of 5.625% and a term of 30 years, assuming regular loan payments and no prepayments).

In January of 2006, the Obamas also purchased a strip of land adjoining their lot from now convicted felon Tony Rezko and his wife, Rita, for $104,166.

To pay for this strip of land, the Obama's probably used some of the proceeds available from a $250,000 line of credit obtained also from the Northern Trust Company in December, 2005. The line of credit is secured by their mansion as well.

If the first couple borrowed only the purchase price of the strip of land and are not paying off the line of credit, then the Obamas would owe a total of $1,310,000 for both mortgages in round figures.

[Pepper]

I just read on breaking news that the Obamas are divorced

[Geee]

I just read on breaking news that the Obamas are divorced

 

 

Your not getting me again

[Pepper]

Rats!

[AceRimmer]

I said when Moochelle went to Vail that she was scouting out new places to live after Obambi is voted out of office next year. They're going to short sell, IMO, because, like the Clintons, they don't want to go back to Chicago anymore than King Bubba and Her Heinousness wanted to go home to Arkansas.

[Saltbag]

divorced from reality, I agree.