We are already starting to see the reduction of PMI, more low down loans, and as rates creep up and less super strong borrowers look to buy houses you will see banks need to lend capital.

The interesting thing about this deal was that the numbers didn't work, until the seller agreed to bring 9k in a principle reduction payment in order to reduce the remaining loan amount.  

I get constant emails from realtor that say "price reduction or new price."

When you sell the note, you'll hopefully have a gain, your purchase price is your basis, if you buy with a 25% discount, then 25% of the annual principal reduction is regular income on the investment.

If you have a vacancy, there is virtually no cost, outside of lost opportunity cost, and therefore a reduction in stress.

The reduced payments in the begining equal the surplus in the end.HOWEVER, when we apply the principal reduction by way of a fixed principal portion of payment obviously the repayment of principal goes faster.  

He gets paid 30% of the first year assessment reduction, so there is not cost to appeal upfront and no cost if he doesn't reduce the taxes! 

That said I think the first domino fell and this is what I see (again maybe only my market).Buyers have disappearedListings are creeping upPrice Reduction quantity is upAffordability is going to get worse if rates go up moreGood Selling

If there is room there you may get a reduction.

Just asking as a novice person reading this trading naked would be a risky bet.Since the volatility is so high, spreads are pretty fat right now,but don't know when it will drop to grab the premium ;)----For the other answers,  we are in an unchartered market.