“Lastly I see relatively high income young dual wage earners ($150K to $300K) that bought small homes during the bubble who can qualify for a nice new big house and then walk away from the other. ”
This helps explain some things. I had a feeling that this was going on. These people are essentially going to a get a free do-over. Yes, there credit will sting for a few years but with all of the foreclosures going on, that stigma has been significantly reduced.
The only bubble buyers who are taking significant loses in CA are those who paid cash or put a large down.
