Sounds like the banks are counting on prices coming back. They think that by lowering the rates to the point that people can make the “false” payments, prices will go up. If these are interest only loans with large early payoff fees, all the banks are doing is changing the reset dates.
What is the old Tennessee saying? Foul me once, shame on me; can’t get fouled again.
I don’t think anybody is going to rush in mass to real estate in the next decade, but I have been wrong about how stupid people be in the past.
