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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: GraceZ who wrote (4801)	8/28/2002 9:46:43 PM
From: John Chen	Respond to of 306849

Grace,re:"Unless people is forced to ...". The problem is the house is a 'credit card' nowadays.

To: GraceZ who wrote (4801)	8/28/2002 9:53:04 PM
From: Lizzie Tudor	Read Replies (1) \| Respond to of 306849

The good news is that this type of scenario usually doesn't play out unless large numbers of people are forced to sell their houses below the mortgage value as in post oil boom Texas. Does anybody know how long it took for the texas real estate collapse to play out? 5 years? Maybe thats what we'll have in SV (worse case) L

To: GraceZ who wrote (4801)	8/29/2002 12:46:17 AM
From: fatty	Read Replies (2) \| Respond to of 306849

>The good news is that this type of scenario usually doesn't play out unless large numbers of people are forced to sell their houses below the mortgage value as in post oil boom Texas. They're forced to sell only if they can't make the mortgage which is typical when they lose their job. They can't just walk out when the housing value drops, else no bank will lend to them again. Even in the worst possible scenario, the percentage of foreclosure is probably less than 10% of all houses. I don't think that's hell unless the media make it to be.