Shadow Tsunami =Shadow Tsunami of renters?

[outtamojo]

Ok, theory has it there is a humoungous number of “homeowners” out there under water living rent free about to be foreclosed/living rent free w/out even a NOD/strategic defaulters. If the banks take back every one of these homes tomorrow and kick out the “deadbeats”, where will these “deadbeats” go? Will they shack up w/ relatives or have to go out and find a rental? If the number of people in this category is as large as some project, could these “forced renters” be large enough to drive up rents? Could it be that living rent free courtesy of slow to foreclose/no NOD sent banks have had a depressing effect on the rental market the past few years?

[Arraya]

Your thinking is backwards. Think in terms of total available housing. If you release more properties to the RE market it will push home prices down and current renters to purchase. Then you have the people that are currently living for free that would have to either find a new rental or create denser living arrangements. The net effect would be downward pressure on rentals and home prices due to the employment picture as less people have employment and would have to “shack up” with somebody.

[Arraya]

Your thinking is backwards. Think in terms of total available housing. If you release more properties to the RE market it will push home prices down and current renters to purchase. Then you have the people that are currently living for free that would have to either find a new rental or create denser living arrangements. The net effect would be downward pressure on rentals and home prices due to the employment picture as less people have employment and would have to “shack up” with somebody.

[Arraya]

Your thinking is backwards. Think in terms of total available housing. If you release more properties to the RE market it will push home prices down and current renters to purchase. Then you have the people that are currently living for free that would have to either find a new rental or create denser living arrangements. The net effect would be downward pressure on rentals and home prices due to the employment picture as less people have employment and would have to “shack up” with somebody.

[Arraya]

Your thinking is backwards. Think in terms of total available housing. If you release more properties to the RE market it will push home prices down and current renters to purchase. Then you have the people that are currently living for free that would have to either find a new rental or create denser living arrangements. The net effect would be downward pressure on rentals and home prices due to the employment picture as less people have employment and would have to “shack up” with somebody.

[Arraya]

Your thinking is backwards. Think in terms of total available housing. If you release more properties to the RE market it will push home prices down and current renters to purchase. Then you have the people that are currently living for free that would have to either find a new rental or create denser living arrangements. The net effect would be downward pressure on rentals and home prices due to the employment picture as less people have employment and would have to “shack up” with somebody.

[pemeliza]

The strategic defaulters (a large proportion of the defaulters in SD) who are living for free are saving cash and have demonstrated a propensity to spend it. Do you think they are going to “shack up with someone” while rental prices are significantly depressed? Of course they are going to rent and then buy again just as soon as someone is willing to loan them the money. Unless they leave the state they are going to be a factor. Who knows they may end up buying their own houses back for 50% off with cash after socking it away all these years. Let’s face it these people are not only getting a free ride they are reloading and getting still further ahead of those who “play by the rules”.

[pemeliza]

The strategic defaulters (a large proportion of the defaulters in SD) who are living for free are saving cash and have demonstrated a propensity to spend it. Do you think they are going to “shack up with someone” while rental prices are significantly depressed? Of course they are going to rent and then buy again just as soon as someone is willing to loan them the money. Unless they leave the state they are going to be a factor. Who knows they may end up buying their own houses back for 50% off with cash after socking it away all these years. Let’s face it these people are not only getting a free ride they are reloading and getting still further ahead of those who “play by the rules”.

[pemeliza]

The strategic defaulters (a large proportion of the defaulters in SD) who are living for free are saving cash and have demonstrated a propensity to spend it. Do you think they are going to “shack up with someone” while rental prices are significantly depressed? Of course they are going to rent and then buy again just as soon as someone is willing to loan them the money. Unless they leave the state they are going to be a factor. Who knows they may end up buying their own houses back for 50% off with cash after socking it away all these years. Let’s face it these people are not only getting a free ride they are reloading and getting still further ahead of those who “play by the rules”.

[pemeliza]

The strategic defaulters (a large proportion of the defaulters in SD) who are living for free are saving cash and have demonstrated a propensity to spend it. Do you think they are going to “shack up with someone” while rental prices are significantly depressed? Of course they are going to rent and then buy again just as soon as someone is willing to loan them the money. Unless they leave the state they are going to be a factor. Who knows they may end up buying their own houses back for 50% off with cash after socking it away all these years. Let’s face it these people are not only getting a free ride they are reloading and getting still further ahead of those who “play by the rules”.

[pemeliza]

The strategic defaulters (a large proportion of the defaulters in SD) who are living for free are saving cash and have demonstrated a propensity to spend it. Do you think they are going to “shack up with someone” while rental prices are significantly depressed? Of course they are going to rent and then buy again just as soon as someone is willing to loan them the money. Unless they leave the state they are going to be a factor. Who knows they may end up buying their own houses back for 50% off with cash after socking it away all these years. Let’s face it these people are not only getting a free ride they are reloading and getting still further ahead of those who “play by the rules”.

[jpinpb]

If the banks foreclose upon a house and puts it to market for sale, that would transfer a renter looking to buy into that home and the previous homeowner into a rental,

What would set it apart would be the investment properties. During the bubble people bought multiple homes, second homes, vacation homes. Many of these are sitting empty. If the banks foreclose upon these homes and then list it, a renter looking to buy would purchase it and leave a rental unit vacant.

I’m not very familiar w/downtown, but I’ve read somewhere about all the empty units down there. Some owners don’t even live in this state, much less this county. We can’t forget all the speculation. One of the driving forces of the bubble.

[jpinpb]

If the banks foreclose upon a house and puts it to market for sale, that would transfer a renter looking to buy into that home and the previous homeowner into a rental,

What would set it apart would be the investment properties. During the bubble people bought multiple homes, second homes, vacation homes. Many of these are sitting empty. If the banks foreclose upon these homes and then list it, a renter looking to buy would purchase it and leave a rental unit vacant.

I’m not very familiar w/downtown, but I’ve read somewhere about all the empty units down there. Some owners don’t even live in this state, much less this county. We can’t forget all the speculation. One of the driving forces of the bubble.

[jpinpb]

If the banks foreclose upon a house and puts it to market for sale, that would transfer a renter looking to buy into that home and the previous homeowner into a rental,

What would set it apart would be the investment properties. During the bubble people bought multiple homes, second homes, vacation homes. Many of these are sitting empty. If the banks foreclose upon these homes and then list it, a renter looking to buy would purchase it and leave a rental unit vacant.

I’m not very familiar w/downtown, but I’ve read somewhere about all the empty units down there. Some owners don’t even live in this state, much less this county. We can’t forget all the speculation. One of the driving forces of the bubble.

[jpinpb]

If the banks foreclose upon a house and puts it to market for sale, that would transfer a renter looking to buy into that home and the previous homeowner into a rental,

What would set it apart would be the investment properties. During the bubble people bought multiple homes, second homes, vacation homes. Many of these are sitting empty. If the banks foreclose upon these homes and then list it, a renter looking to buy would purchase it and leave a rental unit vacant.

I’m not very familiar w/downtown, but I’ve read somewhere about all the empty units down there. Some owners don’t even live in this state, much less this county. We can’t forget all the speculation. One of the driving forces of the bubble.

[Author]

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