Hold on people : another mortgage crisis

Folks, it ain't over till it's over.
Read this interesting piece from slate.com

So what if all these upper middle class and upper class people just walk away from their homes.. even though they can afford the payment.

I've mixed feelings for people who lost their homes cause of the sub-prime crisis. Many of them bought homes which they can't afford with ARM loans and few other lost coz of predatory lending. If just the sub-prime crisis caused this much damage imagine what's the pain with the next wave of crisis.

And I can't really blame all these SoCal residents (Few Southern California pricks loved this word, trust me) walk away from their overpriced 5 BR homes. Coz the money they're paying to lender is more than the worth of the home. Moral aspect aside, I might be tempted to do this.

Recently heard on a businessweek podcast that few lenders in cleaveland and the Rustbelt are actually abondaning foreclosed homes. It's a write off for them. But this causes a domino effect. Obviously this will become a hangout for drug peddlers, petty thieves and solicitations. Property values goes down in that community and again people become skeptic about Negative amortization.

Not sure when're we gonna come out of this recession. The problem here is, no one is willing to catch a falling knife.

Peace.