Here in Northern California, we've been housing outcasts for awhile. We were weirdos for renting throughout the housing boom. Now, we're weirdos for a different reason - we're not walking away from our mortgage.
It's the latest trend, and it's getting hotter. Why make mortgage payments when you're down a cool few hundred grand on your digs?
But now, mortgage lenders are fighting back! From CNNMoney:
As terrible as it is to lose your house to foreclosure, at least it's a relief to put your biggest financial headache behind you, right?
Former homeowners may still be on the hook if there's a difference between what they owed on their mortgage and what the bank could sell it for at auction. And these "deficiency judgments" are ticking time bombs that can explode years after borrowers lose their homes.
It can even happen to people who got their bank to approve them selling their home for less than it is worth.
I read today, I believe in the Daily Reckoning, that two-thirds of homes in Nevada are underwater. Two-thirds!
This is not going to end well. Get yourself some gold, sheep, guns - and of course US dollars - and get ready for the next shoe to drop.
Ed. Note: Why US dollars? Because the dollar's fate is driven by global liquidity flows, which are starting to dry up once again.