Nearly all the loan mods out there start around 2% for 5 years and then go up a 1% a year until reaching todays current low interest rate whatever it is at the time of the mod.

He didnt sell the house because he weanted to keep it and could afford it. The divorce was several years ago and he was doing fine until he lost his job. FWIW many of the divorcing couples I know have one spouse hold onto the house particularly when there are school age children. Thats usually what divorcing couples in upper middle class communities do in CA.

The lender didnt subsidize his divorce settlement as it was about 5 years before he lost his job. He had plenty of equity and refied out her portion. He could easily afford the house after that in his prior career. He didnt relocate either and I never said he did.

You make so many sweeping assumptions I cant even keep up with them. Enough of this nonsense. Admit you are wrong and stop trying to put everything into B&W terms. You were wrong as you often are.