When people have no other assets and abandon their homes, I don't view that as "walking away"... that's more like "foreclosure" (even if the bank hasn't kicked them out yet, they will in the near future.) "Walking away" is more like when someone HAS other assets, but doesn't want to honor his mortgage because the house is worth less than the mortgage amount.
Great news from the US housing market!!! U.S. foreclosure filings jumped 57 percent and bank repossessions more than doubled in March from a year earlier as adjustable mortgages increased and more owners lost their homes to lenders. More than 234,000 properties were in some stage of foreclosure, or one in every 538 U.S. households http://www.bloomberg.com/apps/news?pid=20601087&sid=a3_Y.T_wvElI&refer=home
With artificially low rates and high inflation? I doubt it. The situation will remain regional. Vegas, SoCal and SoFla will bounce like cats. Or in the case of AZ, rise like a Phoenix. The northern big cities like Detroit will continue fading into oblivion. Housing is still VERY weak and I expect the situation to worsen. However unlike the Federal Reserve I see a global currency collapse looming. In that scenario all bets are off. I'm one of the few people who thinks unemployment and wages will rise simultaneously. That's what stagflation is all about.
THAT HAS BEEN RESCINDED FOR HOMEOWNERS ONLY YES CAL. HAS A NO RECOURSE .I MET MANY BUILDERS WHO HAVE GONE BANKRUPT (SMALL BUILDERS) AND TOLD ME ITS NO BIG DEAL CHEERS JOHN sorry about the caps
Where are all these fuckers WALKING to? Even to rent an apartment, you need decent credit or you will need $$$ more upfront as a deposit Dazed and confused <object width="425" height="355"><param name="movie" value="http://www.youtube.com/v/Xajqf-PhO8s&hl=en"></param><param name="wmode" value="transparent"></param><embed src="http://www.youtube.com/v/Xajqf-PhO8s&hl=en" type="application/x-shockwave-flash" wmode="transparent" width="425" height="355"></embed></object>
People who walk away may not have assets, but they still have an income. And can walk away to cheaper places to rent. It's a big difference to have to pay 3k to 4k per month on a mortgage than a 1k payment for a rental.
you might want to look at the information on the fed reserve site...it might change your mind about the situation and whether it is local or not. some good info there http://www.newyorkfed.org/mortgagemaps/
The FED will soon be posting a similar map showing all the homes that they now own after swapping treasuries for AAA MBS