[quote=UCGal]BG-
Interesting theory about folks tapping their retirement funds so credit scores be darned.
However – the reality is that the vast majority of boomers don’t have enough saved to fund their retirements, let alone have enough extra to pay cash for a house on top of providing an income stream.
Your scenario would only apply to a small number… and that number is made up of people who were aggressive savers… so likely to be more financially savvy, financially responsible… and therefore less likely to be in the short sale scenario in the first place.
Just my 2 cents.[/quote]
I think you’re probably right about it being a small number, UCGal. I’m acquainted with a couple of persons in this age category who were spurred by (younger) family members into buying during the “boom years,” against their better judgment. They’re now finding themselves underwater just as they prepare to retire.
Otherwise, in my experience, I have noticed that most boomers have done the best they can in saving for retirement and a large percentage have defined benefit plans and/or military retirement pay for life.
Unfortunately, I don’t foresee the same scenario for Gen X and Gen Y but must admit that their (overall) working conditions, pay and quality-of-life benefits far surpass anything ever offered to the boomer generation of workers, who were much more regimented and micro-managed during the business day. Most of those boomers still in the workforce voluntarily micro-manage themselves if there is no one there anymore to do it for them :=0
