HWG I think we you are exclusively referring to the central bank? What about other government intervention and also perhaps something a little stronger from the lenders,gse’s than loan modification and new products.
I don’t think anything will happen soon. When and if the sick RE market coincides with a struggling stock market and a dismal economy, something could happen. I wouldn’t be the first time. With the federal deficit,frozen RE market , and a sick stock market I think we will see the biggest recession in our life times.
We could have voluntary forbearance by the lenders and even perhaps a moratorium on foreclosures by the government.I was thinking a moratorium on resets might happen but the worst case scenario would not be upon us until after the big wave and subsequent foreclsoure activity has passed. Perhaps nationally we could be in such a desperate state at the turn of the next decade that some new legislation or seriously creative responses by the mortgage industry might come into play against deepening chaos.
