Here is a comment from Calculated Risk

A little worrisome:

There is going to be a big ‘mark to market’

 

Average Joe writes:

I talked to one employee today who decided to stop paying his mortgage 2 months ago. He bought a house for 680,000, it’s worth 400,000 now. The $3800 a month meant he drove up his cc debt and took a $25,000 personal loan. His plan is to live free until evicted and pay off his other debt. He presumes that in the future, a single forclosure during the “bubble” years with no other blemishes will be treated as good as good credit risk.

He says there are many other employees in the same bought around work and the word is to stop paying and live free, save aggressively and then rent for two to three years. By then you’ll have a good down payment (if you decide to buy).

The point is that this is common knowledge and a viable strategy. Many who could muster through see safety in numbers and see it as a “bailout” for the average joe.

This will be viral and hard to stop. Once it’s fashionable, its all over, like what was once a hat on crooked, or pants down around your thighs, now becomes the proper way to dress.

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