There Will Be More Strategic Defaults in the Future

I predict strategic defaults are going to be the next wave of foreclosures.

 It was reported that the financial markets will not recover for another 3 to 7 years.

As I see it Real Estate is the last to recover.  I predict it will take 7 to 10 years before Housing will recover.

Why would anyone want to hold onto real estate for that long and continue to take a loss each year?

The argument of “what is the right and ethical thing to do”  is no longer  a valid argument.

 I say the proper thing for people to do is ask themselves “should I continue to throw good money after bad money” or ” should I just pull out and take the loss now” ?

 These Economic decisions are beginning to out way ethical or moral decisions and this is why I say we are going to see more strategic defaults.

Many people bought second homes, investment properties and these so called investments are now liabilities instead of assets.

Soon people will learn that true wealth is not measured by what one owns rather how one lives and saves.

A home can be a necessity or an  asset when it is paid off in full or it can be a liability and long term debt.

“The Richest Man in Babylon” did not become the wealthest man in his day by spending more than he earned.

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