
Resting on a foundation of stable loan products and backed by can-kicking loss mitigation practices, the risk of future real estate declines is low. Real estate prices do not always go up. Prior to the housing bubble, and despite two previous bubbles in California where house prices went down, most buyers clung to the belief that real estate prices only go up. The housing bust ended this delusion forever, and in the process created a latent fear of future price declines. The fear of falling prices is rational. Without this fear, buyers become foolish and pay any price even when it's way, way too much. The lack of fear of falling prices contributed to the housing bubble. But is this…[READ MORE]