Comment on Buy and Bail plots help homeowners skip out on guaranteed loans by smithavenue

I am currently facilitating a portfolio of a little over 200
short sales all of them are in different stages of the short sale
process and a little over 90% of them are located in the Phoenix,
Scottsdale, Arizona area. Most of my strategic defaults are homes
with prices points over 1MM. Reason being, if you make a significant
amount of money and you just lost 50% of the equity your home was had in
the period of 3 years, you are going to think about how much sense it
makes to continue making your 7K+ payment each month. A homeowner who
just lost that much equity is also going to begin thinking about how
long will it really take to get that equity back? 20 years? 30 years?
With historical appreciation rates of between 3%-4% each year it could
take quite a while. Now here is the BIG IF. If you purchase during the
Boom of 2005 or around then, will you ever even see price get that high
again? Lets face it, prices were extremely inflated. With all
that being said, that is what is going through a person's mind who can
afford their mortgage but have lost so much equity that it doesn't make
sense for them to continue throwing good money after bad especially if
they have cash to buy a new home again or can rent for half the price.
Also, much like University of Arizona Law Professor Brent T. White, I am
shocked that more underwater homeowners in Arizona are not pursuing
short sales!Arizona Anti-Deficiency Statues protect most
homeowners who have purchase money loans only. That means that the bank
cannot pursue you for the deficient balance owed if you get foreclosed
on.I believe the strategic default wave is coming and I don't
blame them. This will cripple the Arizona real estate market for
decades if not the nations.I have a bunch of postings on my site
(www.smithavenue.com) regarding this very topic. I hope you have time
to stop by and read them as they will also give you more of an in-depth
idea of the homeowners and clients that I assist in the pursuit to avoid
foreclosure.Thanks again!Chris LopezPrincipal, Smith Avenue Assets9500 E. Ironwood Square Drive ste. 101Scottsdale, AZ 85258480.398.0909 – DIRECT480.223.6443 – FAXchris@smithavenue.comwww.smithavenue.com