[goldstategop]

They'll walk away from the mortgage... but before that happens, lenders will bust their ass to keep their customers happy. Lenders know if they are unreasonable, they'll face a loss selling on foreclosure. So they'll work out terms with their clients since a lower price still brings in a profit. Its better than a write off on the property in a tight market. So they'll be willing to accept terms they'd refuse to even consider under normal circumstances. And these circumstances are anything but normal.

"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." -Manuel II Paleologus

[Uncle Ike]

" So they'll work out terms with their clients since a lower price still brings in a profit. Its better than a write off on the property in a tight market. So they'll be willing to accept terms they'd refuse to even consider under normal circumstances. And these circumstances are anything but normal. "

Mmmmm-hmmmm...

... and when profits at lending institutions start to fall dramatically due to these desperate measures, how is Wall Street going to react??

We just may be seeing 1929 in slo-mo...

(And the federal gummint might just try to bail it out, bankrupting the nation in the attempt..)

[A CA Guy]

I think new Federal laws don't allow people to walk await from mortgages anymore.
They are stuck I think.

[A CA Guy]

I think new Federal laws don't allow people to walk await from mortgages anymore.
They are stuck I think.

[A CA Guy]

I think new Federal laws don't allow people to walk await from mortgages anymore.
They are stuck I think.