A lot of these places were purchased by investors w/the sole intent to flip and make $$. How can they flip if the value is reduced everywhere. Who will buy? The credit lending will still be tight and now w/rules of 20% down and proving you can make the payments to qualify, there won’t be the flood to buy overpriced, unaffordable places as before.
Writing down the loan and fixing rates will help some of those who planned on being there for 10 years or so who didn’t get in over their heads on payments who aren’t owning multiple properties.
But how many of those are out there? Those people it will help. All the others gambling are still stuck, IMO – and may still end up being walkers.
