Just an idle thought. Big builders going belly up is the next logical step. UPDATE:Beazer In Legal Showdown As Bondholders Allege Default. This default situation won't be the last power nail blast, but given the industry and investigations into BZH you've got to wonder where they will be several months down the road.
-In other news from the wonderful world of housing: Countrywide to cut up to 12,000 jobs
-Is this guy brilliant, or what? Chrysler Chief Sees Link of Housing to Car Sales
-Some advice from the Consumerist that's almost right: Facing Foreclosure? Take A Deep Breath And Don't Panic. I would caution that 'lenders' long ago sold the loans they originated making them 'servicers' which takes the decision making power out of their hands when dealing with the borrower. Entities holding the mortgage macked securities (MBS) which loans are bundled into are relatively inflexible and have a one sized fits all formula with fairly UN-liberal criteria for setting up new payment plans. The decision to restructure a loan largely depends on the borrower's income and whether a new plan has a chance of succeeding. In many cases, folks encumbered with adjustable subprime and Alt-a loans are too deeply in the hole for any plan to work out, unless they're going to extend the loan to 150-years. I think distressed borrowers should get legal help right a way from an experienced attorney. Don't go into denial and do nothing!
Earlier, I related a comment from a commentor at the Consumerist.com's page concerning apparent loan calling by a bank in Indiana. I'm going to take off the site here, until I can get some better confirmation.