My understanding is that's what's next.
It just takes them a bit longer to start defaulting, but it's much bigger than housing.
Does anyone know more about this potent large wave coming our way?
Judging from what I see on main street in my town the Potent wave you referring to is already laying waste to commercial real estate. Ever time I venture into town, I am greeted with an ever increasing deluge of vacant shops and lots of "FOR RENT" signs. Currently the signs are displayed on approximately 15% of the retail space, but I expect more small businesses will soon shutter their doors.
In addition to the current vacancies, there are a lot of going out of business sales taking place. Except for the store that runs a perpetual quitting business sale, the rest are closing due to lack of sales. The people around here are sure tight with a buck, even in good times.