I think that her equity (down-payment included) is practically gone. If she were to sell now, I’m afraid that she’ll have to bring money to closing.
Well, this girl is my younger brother’s girlfriend so I’m not going to tell her what to do (never do that). She is very stubborn and thinks that she can ride out the downturn. Yeah, if the downturn is mild she’ll be fine. But if the market tanks, she’ll realize her mistake and then do the financially smart thing. I told my brother about the possible options and perhaps he told her.
If it’s as bad as I think it’ll get, she won’t be the only one walking from her loan. I expect SD median to get down to around $350k.
