The $64M question is, “Will their lenders (the Big Banks) promptly foreclose on those (defaulted-upon) HELOCS as soon as the law allows?” Any Pigg correct me if I’m wrong that all foreclosure moratoriums have now passed.
In my experience, BK filers tend to be repeat BK filers just 7-8 years after final discharge of their last filing (yes, even 3-5 times in a row). You can’t change someone’s basic character. If the character of someone includes a “sense of entitlement,” then the behavior of that person will continue to reflect that throughout his/her life.
If the answer to the $64M question is yes, then this group is overindebted and will get their comeuppance sooner than later or be forced to sell if they can get out with their heads above water. If the answer is no, then banks have learned nothing this time around but will likely NOT be bailed out by the gubment (ESP HELOC lenders). This will only make it more expensive for highly-qualified homeowners to take out HELOCs in the future.
