With all the potential foreclosures happening in the next couple years, I am wondering how these people will be seen in terms of getting into another loan when prices finally hit bottom.(A loan that they could actually afford) Does anyone have any prediction for these people? Will the banks be even more fearful of these people and not lend to them or due to such a high amount of families forclosing, could the banks extend a bad credit “forgiveness” due to the nationwide trend? I am not saying that there should be any “bad credit forgiveness”, but I am wondering if that could happen. Any thoughts?
On a side note, you have talked about 1st mortgages being a non-recourse loan if there hasn’t been any refinacing. For those who purchased with a 1st and piggybacked with a second, but did not refinance, is that 2nd also a non-recourse loan?
