“The only thing I remind people is that if you don’t have to sell in a bad market, competing with the sale of bank REO, massive inventories on the MLS, etc., you can say your property is worth anything you want based on any amenity of dubious merit, because you’ll only be called on it when you actually have to compete with the market by trying to sell in competition with it.”
For many, this is true. But, as I recall, for the lending institutions that failed, there were a lot of loans, way upside down, that had perfectly happy borrowers making their full payments on time that had their loans called in full. Money got very tight and so perfectly good borrowers lost their homes simply because the market crashed and they could not afford the new terms. No one is truly safe unless they have equity greater than the post-crash appraised value.
Of course you still have divorces, people forced to move, sickness, job losses that all force a sale.
Global liquidity is something that couldmitigate a complete wipe-out. I don’t have a handle on how this will play out and it may provide a cushion?
