I think that people did learn from the bust of the 90’s. I did. Problem is that now you have a batch of new people to the game, people who were not benefitting from the experience of the 90’s.
I put 20% down in the 90’s and I did NOT walk away, but did everything I could to hold on until the market got better and then I got out. Aged a lot during those struggling years. Won’t bite off more than I can chew now. That is the main reason I wasn’t suckered into the subprime loan this time around. But believe it or not, people were telling me to walk away back then. And I had a lot of money into it.
ortho – you’re right. If people put money down, harder to just walk.
I know there are charts for percentage of subprimes, but I thought it was nationally. I think San Diego is a different animal.
I know someone who bought a condo in La Jolla in about ’98. In 2002 bought another condo. Flipped that in 2005 and made $$$. Last year bought an expensive home from bank. Now trying to sell for more. Not moving. That person makes very good money (dr.) I just don’t see him going under. Wouldn’t the bank on the new house attach a lien on the condo he owns in La Jolla? I don’t think he can walk. He even has $$ down on the house. Tough situation. Probably can last a year of making payments. After that, it’s going to hurt.
