I believe strategic foreclosures is the next big problem. People will jump on the housing deflation bandwagon just like they jumped on the housing inflation bandwagon. The government needs to pass strong legislation that will allow banks to follow these people and garnish their paychecks if they choose to walk away. Otherwise we're headed for a double dip.
The strategic foreclosure I just bought had no breakage, yet all the appliances, light fixtures, ceiling fans, even wall outlets. I think they would've taken the cabinets given a bit more time. Many other foreclosures that I looked at were totally trashed.
Until there are real consequences for this behavior, it will continue. The attitude is screw the banks. Never mind about the next person. Never mine about the neighborhood. The rental down the street is occupied by a SWAT guy and his wife, they chose to walk away from their house, yet they both work, are well off, have three cars, including a brand new BMW, and pay relatively high rent. That's wrong, and we're all going to have are pay for this.
The fix is an agressive immigration policy for about 20-30 million new Americans, bringing in 250-500k as an entry fee. The US is overbuilt. Then return the US economy to a PRODUCER not a consumer/ service economy. We need to create jobs, and not double pay gov jobs, nor $10 per hour private sector jobs. The US has the highest corporate tax rate, don't blame the widget company for making widgets cheaper anywhere else but the USA, blame the unions, for the unreasonable demands, and tax policy. We can't compete with 3rd world countries, or anyone for that matter ? Save our great USA, do the math. Houses that sit empty in Florida with no AC, are tear downs,don't buy them, the mold and fungus will kill you, and you will never get it all out. People that don't pay that can, will get a big shock with a new law to pay it all back. There is no free Lunch. The housing crash was a criminal conspiracy, classic wealth extraction