When banks foreclose on investors

[John Delk]

Financial shows occasionally discuss the need to raise interest rates (or market forces that will force them up). Increased interest rates will reduce property values and I wonder how banks will respond in the future? How did they respond after 2008 when homes and investment properties declined in value?

When property values declined during the subprime lending collapse, did banks call the loans on investors, even though the investors were making on time payments?

Declining property values would affect the loan to value ratio. Did banks recalculate the LTV based on the lower value of the rental property and demand more cash (equity) from the investor?