DWCAP,
The situation is very bad in the 600k to 1M range too.The fudging on loans was profilgate throughout all housing values. Some of these homes, though by no means all, were purchased with higher down payments but still used the liar loan method of financing.There has been some equity to burn through.
We have already seen many realtors who were in nicer areas go up in smoke with their purchases. When other professions or investor types, face loss of income that most Realtors have already faced we will see more distress. Alternately maybe we will see less failures with the only difference being that people upside down in this range can hold out long enough to be recipients for “rescues” and any inflation scenarios, whereas the poorer have already succumbed. Some of them may be using up their inheritances, before their parents pass,to survive, which is an option many people in areas like Encanto, which imploded, don’t have.