[quote=Nor-LA-SD-guy]Well if there is one thing the banks have learned in the last 3 or so years is that Nothing begets foreclosures like foreclosures .
I would guess there will be no Tsunami , it’s not in the banks interest, and it’s not in the gov’s interests.[/quote]
I’d bet we’d have 25% fewer foreclosures now if they would have hit the deadbeats hard and fast from the beginning, without any kind of interference from the govt.
What’s causing all the “strategic defaults” is the fact that deadbeats are being painted as “victims” who need our sympathy…and our money.
If people knew they’d be tossed out of their houses within 90 days of a NOD (and be prohibited from buying another house for ten years?), they’d probably be more willing to tighten their belts and make their payments (if they’re able).
As long as we keep trying to “keep people in their homes,” we’re going to see wave after wave of defaults. That’s what you get when you take away the negative consequences (or balance them out with too many positive consequences — like free rent, or promises of lower payments, or principal reductions).
