But of course, the simple scenario I just outlined has risks. If the recovery is significantly weaker than we hope, for example, the greater level and persistence of economic slack could intensify disinflationary pressures at an inopportune time.
Some servicers have been proactive about contacting borrowers who have missed payments or face resets, as experience shows that addressing the problem early increases the odds of a successful outcome. Foreclosure cannot always be avoided, but in many cases loss-mitigation techniques that preserve homeownership are less costly than foreclosure.