Yes, Temecula Guy may be able to buy another of the same model down the street. It may even sell for less. However, at some point, and it’s not that far away despite what you read here, he will not be able to buy any of those homes. They will be gone.
I just don’t believe this. In some areas, maybe. However, in Temecula and Murrieta with the number of foreclosures in the pipeline and already on the market, I don’t see this happening. And you’re assuming that there are all these buyers waiting to snap up deals. Well, yeah, there are prudent people waiting on the sidelines and investors. However, a LOT of people bought during the height of the bubble when anyone and their mother could get financed. These same people are being foreclosed and won’t be in the position to buy even a toilet right now.
yes, some home debtors will be out of their homes. It will be those who overextended themselves. The vast majority who have not overextended themselves or used their home as a bank will not be dragged down regardless of whether the Fed monetizes the mortgages or not.
What are you talking about?? The vast amount of people HAVE overextended themselves. That’s why there are so many foreclosures hitting the market. If they could afford the payments (and most couldn’t) they cooked their won goose by taking money out of phony equity. Also, let’s not forget that psychologically no one wants to be vastly upside down whether they can afford the payments or not.
Your argument sounds like that of a snake-oil salesman turned realtor who’s in denial and trying to sell houses.
