[Yo-Yo]

Happened in 2008 when the subprime bubble burst.

Droves of people found themselves underwater on home mortgages and just walked away.

Short sells were the order of the day back then. The difference today is that there isn’t any cheap rentals to move into, so sure you can abandon your underwater mortgage, but there’s nowhere to go.

[dfwgator]

Yep, might be time to start looking at snapping up some properties on the cheap.

[V_TWIN]

Around ‘08 people that had no business getting home loans got ‘em and then couldn’t or wouldn’t fulfill their end of the deal ......”you mean I gotta pay a mortgage?????.....every month????”

Some people just shouldn’t own a home....that’s why apartments were invented.

[OldGoatCPO]

Locally most apartments are renting for as much or more than a mortgage payment. My daughter pays $500 per month more than I pay for my mortgage. Factoring in garbage, water/sewer and I still pay less.

The apartment complexes are getting away with this for two reasons. Shortage of apartments and the State pays rent for section 8 housing recipients to move into apartments because they lack section 8 housing.

Locally they stopped building apartments and built only single family homes. Because the market was so hot. Now there is a shortage of apartments.

[Myrddin]

People indulged in spending lots of "equity" with Home Equity Line of Credit (HELOC) only to see property values plunge. They owed more on the house than it could repay if sold on the current market.