With our unemployment rate being higher than it was during the Great Recession, it would be prudent to worry about homeowners defaulting on their mortgages…..except we didn’t even make this list:
Those who do go into default should find their lenders being very accommodating even after the moratoriums expire…..unless the homeowner has a load of equity, which virtually all do in San Diego.
Realistically, the worst thing that will happen is that they will have to sell!
I was just having this conversation with friends over the weekend. This surge in demand here in San Diego will buffer the next downturn. Everyone who is worried about their financial future can get out now at a profit. The buyers by definition will be, on balance, more financially secure than the sellers. Those folks will be better able the hang, especially with record low 30 year fixed rates. At worst they’ll be landlords.
Agree and let’s note how much different this environment is today than it was in 2005-2010 when the Tan Man infected the market with unqualified buyers who had no skin in the game, and its aftermath.
Our mortgage standards have been strict for ten years. Once you get a house, you’re not going to give it up without a fight.
If your fight is unsuccessful, you still get lottery-type money as your booby prize, and you have to go live in the hills. You’ll be fine.
I expect rates starting with a 1 will be more common as the recovery drags on into next year.
as crazy as things are now, look out! If this scenario does happen, then 2 million will be the new 1 million.
I expect rates starting with a 1 will be more common as the recovery drags on into next year.
Market is sizzling with sub-3% rates, not sure we’ll see – or need – them at sub-2%?