Can we just stop with the putting a certain political party in one bucket and the other in another. I consider myself conservative but certainly don’t subscribe to the “Rich GOOD Poor Bad” philosophy. I do however subscribe to the _FACT_ that corporations and owners of the corporations create jobs that employee those who make less money.
To answer your point though…why should the bank help Bob if he actually has the money in hand. In fact why should Bob even consider keeping his house if the only way he can is by divesting his 401k.
If you can no longer afford your house…then you can no longer afford it. A certain percentage of people should be renters…and might always be renters. That is just the way it goes.
The fact is 99% of the people out there getting loan mods should not be getting them. Fact many go right back into default months down the road. Fact it prevents the adjustment is prices that NEEDS to happen for the housing market to move forward. FACT it just is creating a nation of people living in debt prison for the next 30 years of their lives.