Everytime I contemplate mortgage defaults I find it depressing. Every default is a person, most defaults affect a family – it is usually a painful proposition. I have to admit – I have been moved to tears as I’ve viewed the ads for auctions of multiple homes in the Michigan area — everyone of those properties represents a sad story to me.
My guess – the worse it gets the worse it will get.
I speculate that over a certain percentage of properties that are for sale that are foreclosures the price decline will take off geometrically. I don’t know where that level is, whether it is 4% or 5% but I postulate that it will be somewhat similar to the Richter scale for earthquakes.
