Bank Motivation as Crisis Worsens

[Toby Munk]

Here my thoughts. As more and more home owners find themselves in negative equity territory banks have every motivation to negotiate.

I also think that a large percentage of the home owner population would rather avoid foreclosure even if that means hanging on to a home that is worth less than the outstanding mortgage for some time.

So if somebody is willing to pay a mortgage for a place with negative equity the bank has every incentive to keep that person in the house. Otherwise it will have to take the hit on negative equity.

So I would think that we will be seeing a lot more flexibility of the mortgage holders in the near future to keep people in their homes.

Are you guys seeing any of this happening yet?