Again, as I see it, there are Underwater Homeowners who CAN afford their homes, but now owe more than their homes are worth. Many UH’s should walk this year, and probably will.

This especially applies to UH’s that have non-conforming loans, UH’s in expensive downtown SD condos, etc.

The structured assets based on these loans will really suffer. Central banks will not be able to print enough money to ‘put a floor’ on housing prices.

And that’s how it should be. Especially in San Diego.

Maybe we’ll actually have affordable housing around here again!