[quote=Still Surfing]Although inventory may be low there are some serious issues in Mira Mesa coming down the pipeline.
According to January Corelogic data there are approx 4000 in 92126 that have negative equity in their homes. When you look at the data on a granular level most of these people above above average interests rates and will not be able to refinance.
As we have seen negative equity creates illiquidity when life change events occur such as job relocation , divorce Heath issues etc. you saw this on the house mentioned in he article.
I am predicting a perfect storm as we will see a surge in short sales especially in Mira Mesa as banks want to mitigate foreclosure risks(bad publicity) and costs( costs less the ss that to foreclose).
In 2012 sellers need to take advantage of the tax free status of forgiving debt that expires in 2012. That in combination with cash buyers creates perfect market conditions to clean the debt off the books of many homeowners underwater.[/quote]
Excuse the ignorance here. But what does the expiration of the debt forgiveness (which personally I think will get extended or some other thing replace it) affect things? It’s not exactly like a seller ways up and says “hey bank, I need you to foreclose or me or complete this short sale before 2012 so I can take advantage of the debt forgiveness tax free status”… It just doesn’t seem to work that way. Banks are in the drivers seat the way I look at it. It just seems like if it’s true there are 4000+ underwater homes in MM a lot of them would have walked already.
