[quote=poorgradstudent]
As for hurting the rest of us, I actually think at this point if more people walked away from homes they couldn’t afford it might help us all out in the long run (or at least those who would benefit from lower housing prices). More defaults means more inventory for the banks, which means they need to both negotiate more with underwater buyers and unload more of the properties they are holding for lower prices.[/quote]
I would agree IF, this was a true free market. Unfortunately, that is not the case.
As the two threads that sparked my initial post illustrate, recent “owners” and renters that would like to own are both getting shafted in this scenario.
High prices are only beneficial if you’re on the selling side of the equation. Both parties stated that they could afford their payment but, have had to cut back in other areas, namely saving for a rainy day, retirement, ect. I personally don’t see that as affording the payment.
