[quote=capeman]Principle reworking will be the dumbest mistake the homeowner can make rather than let the house go and buy it back years later for maybe half of the price.[/quote]
If this program fails to produce gains for some homeowners, they can just walk away at will in the future. It’s also clear that, if the principal writedowns fail to produce gains for most homeowners (=voters), then a new rescue program will be produced, until eventually one does make almost all the homeowners better off. So the people participating in this new program won’t be giving anything up. They are being given an extra option, at no cost or loss to them.
