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The Mortgage Meltdown: Is the Other Shoe About to Drop?

I agree with most of the article but I don't think 60minutes or anyone else that I have read has really looked at other things that are happening.

Consider what would happen if in the case of Florida property where so many people have simply walked away. They do not have a perecentage value to these walk aways as far as I know but this is going to become an even greater problem than it is now.

Then consider what will happen once condo assn.'s start to go after people who are collectable for the assn. fees and then the state will go after them for back taxes. Those who can not shake the property will rent the property for whatever they can get to help off set the expenses and consequently driving rents down and that will drive values down even further.

You can go on and on with these types of scenarios. Do not forget to factor in the social consequences of all of this on the property values. You have to remember that HUD pays no property taxes. They credit the new buyers with the back taxes.

Think what happens to police, fire, and other services that will ultimately affect property values and the livability of areas.

I used Florida as an example because I think those problems are magnified there, but the ideas applies to the entire nation.

Eddie Lampert's ESL Holdings

We see what sears is doing and I see no reason why he can't do the same thing with ESL - DOWN