The value of your house and everyone else's drops....big time. meh.
Values will drop yes...to more reasonable levels. In the long run...that's good for everyone.
Property values (at least in my area) have reached ridiculous levels since 2000-2001.
Ok...A buddie of mine just bought a defaulted house from a bank for less than .50 on the dollar. What about the banks/lenders? 2 trillion+ in ARMS out right now. What happens when these note holders get buried with forclosures? Write this down: If the Govt. does not start bailing people out of these ARM’s, your house will be far less than you can imagine.
I guarantee you that these lenders are BEGGING for help from the govt. It’s worse than you think.