Re: This is disturbing.
this is going to be a continuing problem in some of these markets, and may send them into free fall. What would you do if you purchased a house for 600K 2 years ago in a nice new neighborhood and now most of your neighbors are gone, their houses are vacant with signs that say bank owned. Now if you wanted to sell your home you likely could get 350K or 375K if your lucky, but your mortgage is still 590K or something like that because you got one of those 100% financing loans.
Not saying I would walk away or condone what these people are doing but it is understandable.
If something is not done to stabilize some of these markets, you likely will see foreclosures causing other foreclosure and on and on, which seems to be happening in California and Florida already.
Thankfully New Jersey seems to be in recovery and we are not having to deal with this sort of thing.
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