Yes they will - in the U.S there is no choice but to revalue loans down and even then - the mortgages in the US more-so California is worth more than the property in some cases 40% more.
A revaluation down on mortgages by 10% in the Australian property market will be almost a given late 2009.
By 2010 when the RBA has hit zero interest rates...all new potential buyers will require a minimum 20% deposit on property purchases as the immigration policy tightens due to rising unemployment.
