The scary thing that popped out to me about Mark Hanson’s quote is we have possibly only made it though 25% of the short sales and foreclosures so far. Still 75% to go!

And who knows how many people have been sitting in their houses for 2-3 years not making payments where the bank hasn’t even filed a notice of default…so these don’t even show up in the stats! But I guess some of these would show up in the 90 day late stats?

And the fact that people can’t sell and pay 6% to a Realtor + closing costs unless they bought 10 years ago and never refied. And that is losing all the fix up they put in the house too (and closing costs when they bought). Even people who bought in 2009 and 2010 can’t sell without coming out of pocket for a huge amount. And forget about any money for a new down payment on a new house. In a flat appreciation market, even if you buy now a 50% of peak, you still may not be able to sell for years and years w/out a big loss b/c of the costs of selling.