The currently imploding real estate market in formerly hot markets isn’t just producing pain for the flippers. Lots of people depend on real estate for their jobs. Builders, banks, electricians, plumbers, appraisers, inspectors, real estate brokers, as well as home supply, furniture, and gardening stores are just a few examples. So, when the foreclosure rate rises, and it is, the collateral damage can be profound.
The dreams, hopes, and plans of many will be cratering along with the bursting bubble. It’s the boom-bust cycle of capitalism; greed, stupidity, and cluelessness mixed in with fraud and predators looking for road kill. Remember, behind the lists of foreclosed homes are people who are getting crushed by debt. And no, they can’t just walk away from it as the recent bankruptcy laws preclude them from doing so.