As we have been sharing for several years, there will be phases to this foreclosure hurricane. According to the CNBC article (click on title above or cut and paste this : http://www.cnbc.com/id/36993480 ) foreclosures are starting to pick up in the high end. Sooo . . .
consider these questions:
When the house with a $1.5M mortgage is foreclosed on and sells for $850k, what happens to the value of the other homes currently on the market for $850k that pale in comparison to the foreclosure?
When the house that was at $850k must now drop to $650k to sell, what happens to the house that was at $650k?
When the house that was at $500k now pales in comparison to the house that was at $650k what will that seller have to do?
See the dominoes and how they will fall?
Oh, but wait, what happens to the already upside down homeowners in ALL these price ranges when they realize that they are simply getting further upside down and not only are they paying waaay more for housing than many others in their neighborhood, but they figure out that their tax dollars are subsidizing this entire mess (govt continuing to back shitty loans to unqualified buyers, allowing financial institutions to lie, cheat and steal while making record profits, etc?)
Hmmm
Batten down the hatches, the winds are picking up again, this hurricane is FAAAAAAAR from over!
