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[Gene GeRue <genegerue AT ruralize.com>]

On Sep 13, 2008, at 7:17 PM, Clansgian AT wmconnect.com wrote:

> So in the present debacle, it isn't necessary for jobs to disappear  
> for vast
> numbers of mortgages to be foreclosed.

As the inventory of REOs builds, banks will become amenable to holding  
payments at their original rate. Banks do not want massive  
foreclosures and they will work to avoid that condition.

A dangerous condition exists if mortgagors react negatively to the  
news that they are making payments on a loan that is greater than  
their home is worth. This is an example of the power of the  
sensationalist and negative media.