I've been living in my house for quite a while and, thankfully, have built up a nice chunk of equity regardless of how the market gyrates. And gyrate it does. A friend who is a real estate appraiser told me most of his business now is foreclosures with a sprinkling of re-fi. The bulk of those foreclosures are people who bought with intentions of flipping and couldn't.
But it's not just the average Joe who has been caught in this mess. Jose Canseco's mansion in California
is on that list. The former baseball star who grew up in Miami walked away because it didn't make any sense to continue payments, he said.
I want to know: what happens to these houses? what happens to these people who speculated and lost? (I'm not talking about those who were bamboozled in some cases of mortgage fraud)
I sure as heck don't want to pick up the tab.