Saturday, April 12, 2008

A Mortgage Data Bleg

In a previous post, I argued that there's a large population of homeowners for whom a mortgage bailout will do nothing. Seems to me that we need some data here. To what percentage of mortgagees do the following statements apply:
  • I have virtually no sunk costs in my house.

  • I have sunk costs, but they're all underwater due to price declines and unlikely to be abovewater any time soon.

  • I am no more emotionally attached to the house that I own than I would be to a comparable rental property.

  • It is so unlikely that I'll buy another home in the next 5-10 years that I'm willing to take the hit to my credit to default and mail in my keys.
If any of these statements apply to a significant percentage of the people that a bailout would target, the bailout is going to fail.

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