It’s almost sounding like it will be un-American to go through foreclosure. Yet, people are just doing what’s in the contract. If they can’t (don’t) pay, the bank takes the house back.
It really is quite a quagmire. I just had such ill feelings during the bubble, trying to figure out how everyone was going to pay for all the houses people were buying and some that bought more than one. Most people were gambling, others were scared if they didn’t buy, they’d never be able to and others who just had no idea what they were doing.
What other choices do people have now? So many people are not paying. They’re not saving the money, but spending and helping the economy (indirectly). For those that can continue paying, they’re upside-down. If I were in their situation, I probably would have serious reservations about paying.
The government has done so much to prop up this market. It’s hard to imagine at this point that they would let prices drop like a rock. The only thing they can do is hope for gradual declines over years to come.
