That sort of prediction is dangerous, very dangerous, especially if its true. I don’t happen to think it is, but lets just indulge that fantasy. If prices were to rapidly decline say 50% over two years. That would mean a substantial contraction in the economy, forcing tens of thousands of white collar people to sell there homes quickly. I can think of only three things that would cause that.
1)Economic collapse
2)Terrorism
3)Natural Disaster (Other than Otay Mesa, which already is)
In that scenario, we would all baten down the hatches and get out our shotguns. I certainly wouldn’t be out house shopping, Id be hoarding, and so would everybody else.
Josh
Yes but and here is the interesting part, mortgage holders don’t really win either. They spend a huge amount of money when the foreclose. Legal fees, re-appraisal, holding the property while trying to find a buyer and sales commissions. Foreclosure isn’t really in their interests either.
I went and did a little more reading. Apparently in order to declare bankruptcy a person must go through a 6 month period of credit counseling. During this period they can still be foreclosed on. This gives the lender a much better chance to foreclose than once bankruptcy has started. Its a nice little touch.
I don’t want this thread to take the anti-immigrant strain issues like this often do. If they haven’t been deported already, they are probably safe. When was the last time you saw the INS actually coming to business’s? I do agree with Rich though, its not going to be significant here in SD, because illegals don’t normally have the kind of jobs to support even a basic housing purchase.
Josh
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