No metaphor for my friend. He was out of work and the 2% rate on the trial rate kept him going. He kept current on the 2nd which is only about $100 per month. He’s back to work and his home is saved. The bank never took a loss and down the road should get all money back. They reduced the interest income they got but after several years will be getting what are now current rates my friend could not have refi’d into because he had no equity.

BTW, he has a roomate in his house and has for years. He has owned the house since 1999 and had to pull out about $200K to settle his divorce. He has never lived extravagently or atm’d himself for personal enjoyment. To the contrary most people would consider him a bit of a sad sack. He was completely truthful in everything he did with them and dsiclosed his situation income/ assets/expenses accurately. He piled up some credit card debt which he will be able to get caught up on also.

To me this looks like a win-win and a system that is working at least for some deserving folks.