“I think there is a substantial amount of relief that will be made by the lenders. I still do not think it will have a significant impact…. remember when you were a kid and you would go to the beach and build a sand wall to withstand the waves?
From the lenders standpoint, we all I think, correctly assume that these guys know what is going on. Thus, they are hoping to smooth the incoming waves out and make it like a slow tide coming in over time. Additionally they can pick and choose which homeowners to throw lifelines to. It makes sense to me that they would save those homeowners who pose LESS of a risk to default. Let the others get carried away by the tide.
Just my guess…”
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That’s a good guess. I think the term “loan modification” is going to be as big a buzzword over the next several years as the words “foreclosure” and “short sale.” I also think it is possible that there may be enough modifications to have a significant counteractive effect on downward pressure on pricing. I don’t think it will stop the downward trend, but it could help minimize the damage. Rich’s friend Ramsay has weighed in on this subject several times – and I think we are coming due for another insight from him if Rich has anything to pass along on this subject.
