Would it be possible that to avert mass-foreclosures, the banks implement some sort of ‘reverse re-fi’ in order to keep folks in their homes (and make them debt slaves?)
For example, say Joe FB ARM resets and he just can’t make the payments (for whatever reason). So instead of foreclosing, the bank basically short-sells the property to him with a different loan product that he can afford, say an interest-only one.
Joe FB ends up basically renting from the bank (and can’t sell) for the forseeable future.
I can see something like this mitigating a full-on crash and potentially creating a soft-landing type scenario.
