tag:blogger.com,1999:blog-1207581886255094115.post1987276473507538120..comments2024-02-26T05:51:17.859-05:00Comments on Economic Disconnect: You Know What Happens When You Assume ThingsEconomicDisconnecthttp://www.blogger.com/profile/02802078645713106743noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-1207581886255094115.post-73437378315081416932008-01-29T12:16:00.000-05:002008-01-29T12:16:00.000-05:00I was fascinated by seeing recent talk of the deve...I was fascinated by seeing recent talk of the developing game contemplated by people walking away from mortgages. Musical houses may be next?<BR/><BR/>That's where you walk away from one overpriced houseat nearly the same time as you buy a foreclosed (or REO) property for a lot less. Then your neighbor can move into your house doing the same thing, and so on ...<BR/><BR/>When the music stops playing everyone who actualy wants to live there has moved a short distance into a probably comparable house at a fraction of their former house price / payment.<BR/><BR/>In the past apparently opportunities arose to do this in 'mill towns' or 'company towns' when a major negative employment event occurred causing housing prices & demand to drop. and occur they did! Within the span of a few years everyone shuffled into similar houses at a fraction of hte previous price.<BR/><BR/>If you have a job, plan on staying, and are not generally dependent on credit scores to finance cars, etc. then it may be worth the potentially enormous savings if you have a large non-recourse mortgage. I guess you have to purchase the second home (at like 50% off) with a good down payment (cash) prior to walking from the first. I don't know how this can be pulled off (the details) but it has happened so im told. Like a game of musical chairs.<BR/><BR/>Anybody know if there will be opportunity for homedebtors to do this again in steeply-depressed priced markets?Russ DoGGhttps://www.blogger.com/profile/16161611465473318748noreply@blogger.comtag:blogger.com,1999:blog-1207581886255094115.post-11423561381421170362008-01-28T21:59:00.000-05:002008-01-28T21:59:00.000-05:00I think this market rally needs to be put in that ...I think this market rally needs to be put in that bag. I'll be adding to the short positions tomorrow. I think the market will throw up no matter what the FED does as they have started down the road in a car with no reverse.<BR/><BR/>Getting ready for some wild weather, it was 52 today and we are suppose to be 10 tomorrow with minus readings with the wind chill. This weather is starting to have a lot of volatility, I wonder if there is an index like the VIX that tracks that.<BR/>KevinAnonymousnoreply@blogger.com