OK People aren’t paying the money given to them as mortgages. They are definetly not going to pay something given to them as charity.
The whole problem is this, They expect to see 10% appreciation year over year. They expect to catch up by 08 or 09, after all their realtor told them that, as did the seller and the mortgage broker and the 10 idiots on the street and the 1000 idiots on TV. If they know for certain they are even 1% under, and they aren’t going to get back on the skyward ramp real soon, its going to be a reason to dump the house back to the bank and run.
In any case, banks can use some sorta external agency or get the feds to lighten up the regulations to let them sit on the dumped property for longer.
I still think they’ll lose their ass … for example, casey serin’s larchmont house, had a buyer offer 225 ~3 months ago, the bank refused saying they wanted minimum 240. They took it back and few months later its on the market for 199K. If the bank had the funds come from an external unit (feds or what ever) and they can hold it till market value comes back, maybe they can … maybe, but will it ever come back to 330 when new houses are ~300 for similar size ???
Cool.
Cow_tipping.
