Please forgive me if I'm misunderstanding how this works. If the real estate market crashes again, will it affect people with multiple properties still paying their mortgages every month? Or does it only affect those who are defaulting?
a crash creates people to default just like in 2007.they owe more on their property then it is worth they cannot sell it refinace it etc
I believe when you have a mortgage, you have rights, just as the bank has rights. It is a contract. If you continue to make payments, they should not be able to call in the loan. I did hear of a construction loan being called in during the last downturn. I think a rental property with a mortgage should be safe. Good reason to have reserves to cover lost rent if the housing market and the job market go at the same time.
Thank you both for your replies to this important topic!