Yes it’s in immobility but it’s much much more than that, it’s also all the people who are not underwater but refuse to take a loss so they cannot/will not upgrade, downgrade relocate or even buy new stuff.
There is a very large sociological factor no one talks about either, you cannot have an economic recovery when 30 % loan owners owe 90K more than current value and probably another 30% paid 90K more, and no short sale is not going to cure that. Also the Cities have based their current revenue expectations on 2005, and they are going to be in constant funds shortage until they address that, AND NOONE DEFINITELY WANTS TO TALK ABOUT THAT !!!.
