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> Mortgage debt will probably not be a problem in this cycle. Disagree if you consider that many people are getting mortgages on overvalued properties at or ne
by notadoc 7y ago
> Mortgage debt will probably not be a problem in this cycle.
Disagree if you consider that many people are getting mortgages on overvalued properties at or near market peaks now, and in another significant downturn those could easily be underwater by 15%-50%. The same thing happened widely in the prior real estate bust in many trendy areas, leading to many foreclosures.
- fortran77 7y agoThe biggest damage was in non-trendy areas like Las Vegas suburbs or Orlando suburbs.
- losteric 7y agoI only see this happening in exploding tech markets like SF, where the impact would honestly be minimal - some people might have to downsize but we wouldn't see mass unemployment or homelessness/crippling debt like after 2008.