Within the next year if not 6 months.
I’d be surprised if we had a recession in the next year.
A bunch of greedy rich people who bought the bad loans as investments losing their money is not going to lead to a recession. Those who borrowed the teaser loans will only suffer temporarily. Their lenders can’t afford to foreclose on properties that have lost a lot of value if they can reset the loans so the borrowers can stay in the properties. They will just need to readjust their expectations on the return on investment.
Of course, there are many borrowers who had no business being approved of the loans they got. In the short term, they should have been renters until they had a larger down payment.
The investors in RE loans have only themselves to blame for the money they are losing.