Just because a loan is low/no doc that does not mean it is doomed. I had one on an investment property that i flipped a few years back and it was paid off when I sold a few years ago. I have a friend that bought 5 investment properties and has sold all of them off already. I know self-employed people with OA that just cant document income so they used them. I dont pretend to know what percentage of the OA’s are legitimate and what are “liar loans” but they cant all be bad. Based upon what I see the liars were the weakest hands and most likely to walk quickly when underwater. I dont think its a stetch to think that a high percentage (how high I dont know) have already gone bad.
