i agree that there comes a point in property values where it’s cheaper to walk away.
if prices in CA fell 50% state wide – this would be epidemic. People would be walking left and right.
imagine you have an IO loan for $500k, and then prices hit $250k….. do you keep paying for something worth half what you paid or just walk and become a renter. it would almost make sense to just rent at that point….
if people walked at this rate – yeah, prices would go down the tubes… i just dno’t see it happening.
we don’t have job losses in so cal like we did in the late 80s….
did the late 80s job loss/housing crash affect SO CAL, or did if affect ALL of CA?
