[goldstategop]

A lot of people will refinance their mortgages to lower their monthly payments. And lenders will agree since they're going to get repaid on the loan, albeit at a lower return than they otherwise expected. But it beats foreclosure, leaving them with next to nothing.

"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

[Concentrate]

Yes, but what happens when the loan has been sold and packaged as an MBS(Mortgage backed security)to your pension fund? Or your mutual fund? What happens then? :)