I wouldn't buy another one and llet my current home be foreclosed.
1) I would definitely buy another home at 50% off, probably pay cash.
2) I would keep my current house too.
For me, screwing up one's credit on something $500k or less isn't worth the time or inconvenience frankly. If it's $5million on the other hand, well that would be a different story wouldn't it?
So i guess the question is might be how much is your credit really worth?
Also, as much as I want to believe in a 50% correction, I have to put this in perspective. Running my immediate neighborhood, a 50% correction would take us roughly back to 1998 house prices. Most of the homes that on my streets and immediate cross streets are original home owners who purchased in 1998. I would think that no matter what happens, most of these folks aren't going to move because their mortgage is so low and prop tax is so low. These are the stay put people….
The ones that probably would consider selling are the greater fool like myself who bought from the few sellers in this neighborhood. People like me make up about 15-20% of these on our streets, because I looked at the sales history, there hasn't been that much turnover. Out of the new purchasers, I would say at least half of them are asian….So, I would have to put on my "ethinicity" hat here, and say at least for the purchasers around me, most of them will be hanging on to dear life because they would probably fit the stereotype asian that refuses to let go. So I'm not really sure if the 50% discount will be possible in certain areas.
