My brother is a mortgage broker. He made an interesting statement regarding forclosures:
Imagine you are a bank with two customers paying you their monthly mortgage. Both homes are worth $400,000. Both are several months in arears. However, one has $150,000 in equity and the other is on an interest only loan and actually has NEGATIVE equity.
Which one are you gonna foreclose first? ;)
Why is this man saying anything at all? I'm sure Bernanke's pleased . . .