<<Why do you think that future house purchasers should subsidize previous house purchasers that purchased more than they can really afford?>>How does it help you for your neighbor to be foreclosed? The house isn't going to sell for $250,000. It may not even sell for $200,000. And when it does sell, that house is going to be part of the neighborhood comps, which means that your house is now worth $200,000 or less. Nobody wins when the homeowner gets roughed up in this market; not the homeowner, not the lending agency, and surely not the neighbors.But it isn't about "me", certainly not primarily. Primarily, it's about the neighbor, and the people who lent him money. Secondarily, it's about the neighborhood, of which I am a small part of.But if you want to talk about the neighborhood and me, then here it is. The neighbor hasn't paid his homeowners association dues for at least 3 quarters, and it will be 4 quarters by the end of the year. The rest of the people in our neighborhood are making up for that lack of payment with higher assessments. The neighbor also has stopped paying his homeowners insurance bill, so if a hurricane or a fire damages or destroys the house, there is no coverage. The neighbor has also stopped paying the lawn and pool service, so the lawn is overgrown and the pool isn't looking too good either. The house also needs some repairs done, and really needs some roof repairs or perhaps even a new roof. Another few months of such substandard maintenance and it will be worth even less than it is today in the current depressed market. And another few years of such lack of maintenance and it will be worth nothing more than the value of the land it sits on. As far as the neighborhood is concerned, the best thing would be a quick foreclosure, followed by a sale at a lower price to someone who an afford to maintain it properly.
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