[quote=spdrun]So FHFA announced the possibility of eventual principal reduction for approx 33,000 borrowers that would already be available for payment forbearance. Long term (few years), that would mean that those houses could end up on the market at the reduced loan balance, vs people being encouraged to stay in them and not sell (with forbearance, the full balance would come due upon sale). What’s the advantage to Fannie/Freddie/the market here, or is this just a sop to 33,000 potential Dummyquack voters in an election year?[/quote]spd, these people being allowed to sell and get out in a “few years” all the while having kept the cash they took out still have their luxury vehicles and their kids got out of college without loans all due to the cash they successfully “stole” out of their property’s (then artificially inflated) value!

So, NO! They should NOT be allowed to get out with any amount of forbearance at all. If they don’t yet qualify for permanent mods, their lenders should be foreclosing on all of them, forthwith. This group has been given wa-a-a-a-y more than enough years at this late date to p!ss or get off the pot.

Do you have a link to provide where you saw this proposal, spd?

The rest of us who kept our noses clean for the long duration have waited long enough for these former squatters and now “near squatters” to be gone so someone more creditworthy could get the property.

Yes, even a “flipper team” who will put in plastic composition wood-look floors is preferable to these slobs.