Mike B.

1 Comment

    • ON: Sun Feb 24th 20:20 PM
      Commented on:
      Proposals for a Depreciating Housing Environment
      Some people will be able to make their mortgage payments, even if they are underwater on their mortgage, as long as their bank doesn't foreclose on them. So banks should keep mortgages open as long as payments are made. Foreclosure doesn't help banks, so they should do whatever they can to avoid it.
      Then in a few years when the inevitable inflation kicks in (because of the massive stimulus now in the system), all the house prices are going to rise again and the home-owners won't be underwater anymore. This could be a temporary problem if the banks play it right.
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