This game of chicken is going to be played over and over again. I expect a growing secondary market for recourse Heloc judgments. I’m curious what the typical cents-on-the-dollar purchase prices will be.

I would not be surprised to also see non-recourse 2nds/Helocs play hardball with borrowers at the outset, but at the end of the day these lenders are going to have to cave. Many are looking at total losses.