delta 777

Different Views on Housing Supply

there is another large group of "sellers??" who bought a home for hundreds of thousands of dollars more than current valuation and deliberately choose to walk away rather than be stuck with a vastly overpriced negative cash flow, regardless whether they are actually able to pay the mortgage or not, and regardless of the effect on their credit rating. This group also includes speculators who purchased multiple properties to flip. It doesn't require a lot of financial smarts to know that it is best to walk away from this type of loss--if you still have cash, you can be sure that you can buy again at a lower price. It would be of interest to know how large a percentage this walk-away sector is.