Hawk you may be correct. However, I think as the climate deteriorates (or shall I say continues to deteriorate) that the lenders may start to smarten up. I don’t know the details on what he owes verses what the comps are showing. I would bet he is already under water if he is sitting on a 4500 a month payment. If he can get enough comps to show that it is not even worth attempting to move forward without going short right off the bat, then perhaps he will get some luck with the lender. The biggest problem is the hardship. If he can prove that he is in a hardship situation then he may not have to go through the customary falling behind process that you have alluded to.
