During the real estate boom, there were many “pretenders”. They come in many stripes:
1. People whose incomes are so low that lenders (under normal circumstances) would not lend them money to buy anything, not even condos. These people ended up as owners of SFH, anyway. They are “renters who pretend to be homeowners”.
2. People whose incomes allow them to buy condos/town houses only. These people ended up as owners of SFH, anyway. They are “condos/town house owner who pretend to be SFH homeowners”.
3. Then there are those who can afford a small SFH in Mira Mesa. When values go up, they extract equities to buy additional properties or fancy cars or fancy vacations. They are “lower middle class folks who pretend to be able to afford the upper middle class lifestyles.”
Now, the data from ForeclosreRadar.com tells me that Mira Mesa has more than its share of “pretenders”. These “pretenders” have been living beyond their means, so now it’s time to pay the pipers.
Basically, they mortgaged their future, they spent their future earnings. This means that they won’t be able to return to their previous standard of living before the bubble. So, they won’t even be able to rent in Mira Mesa.
Now, you can say that I’m a speculator if you want. But, there is a truism that transcend time/place: All debts have to be paid 🙂
