Sorry but no way do I agree that any modication is helpful even if it results in a de facto increase in homeowners equity. How can you say this is deflationary? The home does not become active inventory. The home is NOT comped at the new value because no appraisers know of what happened, and if anything this move then invalidates all other comparables for the neighborhood. It essentially perpetuates fraud.
How would you feel if you bought a home only to find out half of your neighbors had recently “gained equity” by reworks and writedowns?
