I agree. The projections for foreclosure percentages are purely guesswork. Also, 80% seems like a really high number to me. I’m not even thinking about foreclosures at this point. Large numbers of short-sales seem more likely to me. Who knows…maybe the banks and government will conspire to keep everyone afloat with forebearance into the 2010s and 2020s? All I know is that housing prices MUST come down.

Anecdotally, nearly all of the thirty-forty somethings we know who have bought/traded-up in the last two to three years, have used the I/O NegAm type of loans just to qualify for their purchase. This, despite having substantial cash to put down, and multi-generational lows in borrowing rates. Certainly, some of these people are f&*ked, no?