hipmatt: “There are currently very minimal consequences for walking away from the home (home owner), and many of them can now be resolved easily (i hear) through a lawyer or other credit repair agency.”
I agree. If we’re both right, and the lenders learn the lesson from that which is now staring them in the face, won’t mortgage rates go through the roof unless the government guarantees repayment? I see very broad govt guarantees of repayment as the next really big step in this saga. That might stop price declines, as the market gets fed nearly unlimited amounts of risky new loans.
