Quote:
Originally Posted by Wayne Maybury
Or who else can keep on borrowing more to pay off existing debts, on an on-going basis? Sadly, there does not appear to be any sort of viable debt exit strategy.
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Actually, there does appear to be a strategy - if the owner and the lender think that prices will go up, both are willing to enter into a 125% of value contract - sound familiar?
Here's the interesting thing - what if the owner needs to sell - say in one year due to a job relocation or loss? No one will buy for the mortgage balance, so our Uncle Sam will have to take it in the shorts and the resulting poop will be all over us for year and years. It will take 10 years of more for housing prices to go up, especially in the high impact areas.