Strategic Default and Walk Away from that Albatross of a Mortgage – Strategic Default increased by 68 Times from 2005 to 2008 in California. The Economic Psychology of Walking Away and is a 200 Point Drop in Your Credit Score Worth Holding Onto a Property?
As the stigma wears away and more Americans find themselves with unmanageable housing payments, many are making the conscious decision to walk away from their mortgage. What occurs in a walk away, as opposed to a standard foreclosure, is the borrower is making a business decision to stop making their housing payment. Now this compares [...]
The Option ARM Day of Reckoning for California is Here: 60-Month Window Opens for $134 Billion in Recasts. Why Option ARMs will hit Mid to Upper Priced Homes.
The day of option ARM reckoning is now here. The 60-month window on many of these loans is now over and we are going to enter the first major waves of recasts. In the next two years $134 billion in option ARMs will hit their first recast. This might seem like a tiny amount given [...]
San Francisco Shadow Inventory Larger than Regular MLS Data: How the Real Housing Inventory is Hidden from the Public.
Once upon a time in California, housing prices aligned with national prices. You don’t need to go back into the legends of the state because this was a time in the 1960s and early 1970s. At this point, housing in California started to disconnect from economic fundamentals. Many people forget that California had a housing [...]