Well, we seem to understand that they’re not getting flushed out at the moment, yeah? Many homeowners are supposedly in distress, but the shorts/foreclosures aren’t there. Nobody has come up with a good explanation for either side of that (the dreaded shadow inventory), so I’m certainly not going to make something up.
Also, I don’t think every single buyer who got left holding the bag on an overpriced home will end up in distress. Plenty (and I mean plenty) can afford it, they just didn’t fare as well financially as they could have.
