So sorry, the Pubbies are in charge. People in the hi-dollar areas of the Peoples Republik of Kahleefornia can go pound sand.
Nobody forced these folks to pay rediculous prices for postage-stamp sized homes.
Man, I wasn't even thinking about California. Those people are psychotic about homes and home prices.
But here's what I see happening. House prices fall like a stone. Many people find themselves "upside down" on $750 mortgages for homes suddenly worth $400K and below. Banks -- not wanting a bunch of house on their hands -- institute "work out" mortgages for these folks and try to get the gov't to back the refinancing.
That's correct.
The CA folks do not live in reality.
Most truly believe their so called "equity"
will continue it's soar. Not possible.
Recall Prop. 13?
It put a limit on the amount property taxes could be
increased each year.
Well, look how CA got around that!
Soaring real estate prices with lots of
folks selling, refinancing, buying over
their heads due to low interest rates.
NOW, they're stuck with HUGE amounts in property taxes.
Remember all.. (Economics 101), the value of an item is based on what someone will pay for it. A little house in California is being purchased today for $500,000, so it's "worth" $500,000. But if some unforeseen events suddenly cause people to offer only $200,000 tomorrow for the same house, then it's worth only $200,000.