svelte, you must have miss understood me. I never said all of them have cash stashed away. I said that we do not know everyone’s financial, so we can’t just assume that they don’t. That’s very different than saying everyone have huge amount of cash stash away. I thought I made that clear that since people who are conservative with their money are the exception and not the rule, there’s an almost certainty that a lot of the people on that list are not conservative w/ their purchase. So, all the one w/ high LTV will have much less holding power than you. But not all of the people on that list have high LTV. Most of them might have high loan amount, not all, unless you consider ~$700k in loan for a $1.3+M house is high. It’s about LTV, not just plain old loan amount.
Out of the whole list, I found these:
These people have anywhere between $300k – $900k in equity. Do you think people who have that kind of equity in their house don’t have other money saved? Do you think people who have 20-50% equity in their house will have less holding power than someone who have only $200k loan but it’s at 100% LTV? I hope I made it clear enough to you that I think LTV is more important in term of guessing who has more staying power than just loan amount. BTW,do you think making ad hominem attacks strengthen your argument?
