How many upside-down Americans will walk away?

[Eugene]

Numbers from calculatedrisk are misleading (I’d even say inaccurate). 20% nationwide decline is the average of 50% decline in California and maybe 10% in Minnesota.

Personally I expect 50% default rate among all homes bought or refinanced in CA/AZ/NV/FL between mid-2004 and 2007. Something like 700k foreclosures in CA and 50k foreclosures in San Diego county.

[hipmatt]

There are currently very minimal consequences for walking away from the home (home owner), and many of them can now be resolved easily (i hear) through a lawyer or other credit repair agency.

There is no way I would continue making payments on a home with neg equity. Its far better to take the ding on credit, rent a few years, and get back in at half price.

[hipmatt]

There are currently very minimal consequences for walking away from the home (home owner), and many of them can now be resolved easily (i hear) through a lawyer or other credit repair agency.

There is no way I would continue making payments on a home with neg equity. Its far better to take the ding on credit, rent a few years, and get back in at half price.

[hipmatt]

There are currently very minimal consequences for walking away from the home (home owner), and many of them can now be resolved easily (i hear) through a lawyer or other credit repair agency.

There is no way I would continue making payments on a home with neg equity. Its far better to take the ding on credit, rent a few years, and get back in at half price.

[hipmatt]

There are currently very minimal consequences for walking away from the home (home owner), and many of them can now be resolved easily (i hear) through a lawyer or other credit repair agency.

There is no way I would continue making payments on a home with neg equity. Its far better to take the ding on credit, rent a few years, and get back in at half price.

[hipmatt]

There are currently very minimal consequences for walking away from the home (home owner), and many of them can now be resolved easily (i hear) through a lawyer or other credit repair agency.

There is no way I would continue making payments on a home with neg equity. Its far better to take the ding on credit, rent a few years, and get back in at half price.

[patientrenter]

hipmatt: “There are currently very minimal consequences for walking away from the home (home owner), and many of them can now be resolved easily (i hear) through a lawyer or other credit repair agency.”

I agree. If we’re both right, and the lenders learn the lesson from that which is now staring them in the face, won’t mortgage rates go through the roof unless the government guarantees repayment? I see very broad govt guarantees of repayment as the next really big step in this saga. That might stop price declines, as the market gets fed nearly unlimited amounts of risky new loans.

Patient renter in OC

[patientrenter]

hipmatt: “There are currently very minimal consequences for walking away from the home (home owner), and many of them can now be resolved easily (i hear) through a lawyer or other credit repair agency.”

I agree. If we’re both right, and the lenders learn the lesson from that which is now staring them in the face, won’t mortgage rates go through the roof unless the government guarantees repayment? I see very broad govt guarantees of repayment as the next really big step in this saga. That might stop price declines, as the market gets fed nearly unlimited amounts of risky new loans.

Patient renter in OC

[patientrenter]

hipmatt: “There are currently very minimal consequences for walking away from the home (home owner), and many of them can now be resolved easily (i hear) through a lawyer or other credit repair agency.”

I agree. If we’re both right, and the lenders learn the lesson from that which is now staring them in the face, won’t mortgage rates go through the roof unless the government guarantees repayment? I see very broad govt guarantees of repayment as the next really big step in this saga. That might stop price declines, as the market gets fed nearly unlimited amounts of risky new loans.

Patient renter in OC

[patientrenter]

hipmatt: “There are currently very minimal consequences for walking away from the home (home owner), and many of them can now be resolved easily (i hear) through a lawyer or other credit repair agency.”

I agree. If we’re both right, and the lenders learn the lesson from that which is now staring them in the face, won’t mortgage rates go through the roof unless the government guarantees repayment? I see very broad govt guarantees of repayment as the next really big step in this saga. That might stop price declines, as the market gets fed nearly unlimited amounts of risky new loans.

Patient renter in OC

[patientrenter]

hipmatt: “There are currently very minimal consequences for walking away from the home (home owner), and many of them can now be resolved easily (i hear) through a lawyer or other credit repair agency.”

I agree. If we’re both right, and the lenders learn the lesson from that which is now staring them in the face, won’t mortgage rates go through the roof unless the government guarantees repayment? I see very broad govt guarantees of repayment as the next really big step in this saga. That might stop price declines, as the market gets fed nearly unlimited amounts of risky new loans.

Patient renter in OC

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