What if 25% of homeowners mortgages defaulted in one year?

[Jim Kuhn]

What would be the impact if 25% of homeowners gave up their homes and moved in with siblings, parents, etc.? How much would this 'snowball to impact' banks, utilities, governments, etc.?

Thank you,

Jim Kuhn
Catfish4u
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[Luxoris]

There would be a bail-out long before it could ever reach 25%. If it did, the Great Depression would look like a minor recession.

[Fnord]

Paging Borodog...

A government bail-out makes me want to vommit. It's almost oppressive to make the people who didn't get a silly mortgage or give away money to those that did pay-off other's houses.

Then again, I bought high, sold higher, moved to LA and rented seeing this comming. I guess no good deed goes unpunished.

[adios]

There'd be a lot of good deals in residential real estate to be had. It would be exciting.

[Moseley]

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There'd be a lot of good deals in residential real estate to be had. It would be exciting.

[/ QUOTE ]

Do you think you could compete with China's 2.4 trillion war chest?

[natedogg]

[ QUOTE ]
[ QUOTE ]
There'd be a lot of good deals in residential real estate to be had. It would be exciting.

[/ QUOTE ]

Do you think you could compete with China's 2.4 trillion war chest?

[/ QUOTE ]

Umm.. yes. The point is that if property is cheap those with capital will snap it up. If Chinese investors want to pay *too* much for it, as the Japanese did in California 25 years ago.... that's good for us too. Either the property is cheap, or the Chinese are bidding it up so high that it's no longer cheap. You can't really have both scenarios: Cheap property gobbled up by the Chinese/(insert foreign devil of the day here).

natedogg

[Felix_Nietzsche]

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What would be the impact if 25% of homeowners gave up their homes and moved in with siblings, parents, etc.? How much would this 'snowball to impact' banks, utilities, governments, etc.?

[/ QUOTE ]
Outrageously expensive housing prices will fall.
It will be a buyer's and renter market. People will have more disposible income.

Nitwit bankers take it on the chin for making STUPID loans... They then regain their sanity and stop loaning money to people who can't afford to pay them back...