Perry, I think we disagree on this one. I actually believe that people will try to avoid foreclosure at all costs. The only exception I see would be vacant flipper houses. Those will be quickly abandoned. But I think that a regular homeowner in a bad loan will attempt to stave off foreclosure as much as they can (cutting down on consumption, renting rooms, etc). Whether they can pull it off or not is another story, but I think that they’ll try very hard. Homeownership has such a strong emotional and social component, people won’t let go without a fight.
