[quote=FlyerInHi]
That might be bad. Someone maybe stuck in a $150k house outside of Peoria.[/quote]

That statement does not make any sense! $150K in a house one probably paid $50k for and owe nothing – vs $750k for a house that one serially refi’d to try to keep their head above water in the payments – and are effectively underwater.

With the first, the owner also probably have some money set aside. The second will be running on vapors – with nothing set aside. Now who really is ‘stuck’? The person who could decide to take a bit of a cut on selling a $150k house to get it moved on the market – or a person who is upside down and needs to get the bank to agree to a short sale in order to get it off their hands.

Earnings, costs, taxes etc are all relative. What isn’t is how far above water you are, or whether you are above water at all.