That is a reasonable concern. In the end, have not the worst of these been beaten up regarding the system through foreclosures and refinancing?
One big issue is they asserted that there were 3.2 million fewer home equity loans outstanding at the end of this period than at the beginning that we don’t even know how many of these second liens are still outstanding. Despite the Equifax report showing 12 million new HELOCs and home equity installment loans.
Exactly exactly How is the fact that feasible? Few 2nd liens had been foreclosed in the last six years. Truly the only other plausible explanation is that millions of these borrowers rolled their 2nd lien in to a cash-out refinanced first-lien bigger than their past one. They are able to accomplish that if their home had increased in value sufficient in order that they had positive equity.