Found this article on www.wsj.com and thought the findings were interesting; although in the state of WA negative equity is not a "hardship" for a short sale, many other things are most of these situations are in a negative equity position.
http://online.wsj.com/article/SB124657539489189043.html#
From my stand point here in the Tacoma area, this is only going to worse before it gets better.
I am a CDPE (Certified Distressed Property Expert) and my main mission is to help the distressed home owners in my community. I work with buyers and sellers throughout Pierce County also.
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Hi Jim
This info all but confirms the next wave of defaults of Alt A and Prime Mortgages which will last until 2012. The question here is, with $500 billion in toxic debt, what will be the extent of the damage?
Many of us are expecting worse before better. But one of these days we will work through this.
Agreed on both points; this is why I am focusing on short sales in my business right now. Every sale we can keep from going to foreclosure is another property that will help stop the vicious circle we are in.
Jim, That is a VERY interesting article. The problem with the chart, that foreclosures are "caused" by negative equity, is that it does not seem to fit with the other measures in the chart. Negative equity PLUS reset rate, OR Negative Equity PLUS Unemployment cause foreclosures... The obvious point is that during trying times, insufficient income to pay the mortgage, the borrower cannot just sell the house for what it is worth. Thus, many allow foreclosure.... Thanks for the article!