Coincidentally, I listened to your podcast yesterday, causing me to reevaluate the percentages I have been entering for repairs.

My original concern is whether a written agreement between us, cash for keys, to leave by tomorrow will hold up in court. 

I tried using a big name lender initially but that turned out to be a headache and cause problems.

Employment hasn't gone down and there isn't any major issues that would cause the market to crash.

@Michael Carbonare, yes that is a very valid concern.

As far as her concerns with not being rented to by the new buyer, if she has a lease with you that has 7 months remaining on it then the new buyer has to honor that lease (though he/she can evict her if she is not following the lease rules).

Now, two of the common areas of concern for LOCs I see out there is the 10 year maturity date and the adjustable rate.

Voice your concerns on their social media/web forums.  

My concern is that there are no garages in any houses in my neighborhood.

I dont see that causing a big up tick in defaults. plus the buyers were much more qualified.I can see it on teh commerical side though .. with those that bought cash flow that only works at X and now they go to refi and its Y .. as they had 20 due in 5 loans.. i can see saw pain there. did not read the article but I will .. but wanted to comment on why i dont see a big spike in defaults being tied to interest rates.. i see sales slowing.. and such.. but not a direct line to defaults.