great post eaves. You have eloquently stated what I was thinking.
There is a certain lack of introspection, and learning from past mistakes in SMH’s posts that makes one a bit frustrated. Makes me think that we are doomed to repeat past indulgences if this is the attitude of most.
With that said, SMH, I am sympathetic to your points. Strategic default seems smart to me in general, and if I were caught in the trap of owing 6 figures, I would default too. My credit isn’t worth that much. You were operating as a rational being. You were still honoring the terms of your previous contract. You are not breaking the law, and if some lender is so stupid as to give you more money…well we are really screwed.
I, and probably many others here, are just really frustrated with the view many Californians (who are not alone) hold regarding home appreciation. I guess I can not blame them. This game of insane housing appreciation in CA has been going for a very long time. It didn’t start at the turn of the 21st century.
It is that irrational exuberance that is so stupid…that housing will make you money. And sadly this view point did not die in CA with the last bust. Only productive assets should make you money.
