I posted this thread in the Economics section, but I decided to post it here too so I could get more feedback. Im not an expert, but if home prices have dropped on average 30% nationwide that would mean almost all the HELOCS, 2nds, pay option arms,are basically secured by nothing. Of course the foreclosures hurt the financial companies and maybe we've seen the bulk of those write downs, but i know from experience that the majority of all HELOCS and 2nds are secured by the last 75%-100% of home value... and there are A LOT of them. Have financial companies really already written down all of this now unsecured debt? Is it really all said it done?
I thought they were trying to curb the impact of the defaulting loans. Im not talking about defaulting loans.