…but if it did happen, it’s a huge windfall to the borrower.

AND the sad thing is that we here realize that, but many of the clueless that have these loans are expecting/hoping to get bailed out, like they are entitled to be saved…

It’s a disgrace, but not a surprise.

With all the chopped up tranches, an investor that was expecting a higher return will be told you can get less OR you can get nothing.

It’s a way to keep the borrower in debt for an overinflated stucco box, which will still decline in value.

People will still owe 50% more than the property is worth.