[quote=AN][quote=CONCHO]Oh yeah, home prices would collapse. Also, people will moonwalk away from the mortgages en masse. I know I probably would![/quote]
Except for those who are paying less for mortgage than comparable rent, even w/out mortgage deduction.[/quote]
I think if they really phased the deduction out, home prices would drop drastically. Assuming cash-rich buyers pick these houses up at record low prices, what are they going to do with them? Rent them out! Bingo, lots more rental properties on the market will push rental prices down along with home prices.
I think it will be deflationary all around in housing, both in rent cost as well as home prices. People would moonwalk in huge numbers right into similar rentals discounted 30% also. Or, even better, they can just stop paying their mortgage, save the cash, wait 18 months for the foreclosure process to complete and then plop down cash for one of the new cheap houses!
In an immoral society, those with the most morals are destroyed first.
