And what is better for me, I ask? Is is better to have my neighbor and his family stay in the home pursuant to a mod, or would I rather he go into foreclosure with the house ultimately sitting empty and waiting to become an REO fire sale comp-killer. Again, not really a close call as to which is better for me.
You are assuming that the re-assessment on the neighbor’s house does not affect the comps.. but it will indirectly set the ‘new price’. The new price will be based on affordable income whether people are kept in their house and we create a moral hazard by doing so or allow the market to adjust and have people who really can afford the house. Do you want someone who can barely afford the house kept in the house, but because they can barely afford it, let the house get run down? Or do you want to go through the foreclosure and have the price drop a bit.. but the people coming in can really afford and maintain the property?
To the question previously.. in order
A, B, C .. but C only if I really have to. If I have to repossess the car, it will probably not look anything like what I sold it as. The springs will probably be cut to lower it, suspension arms bent because the car rides just off the jounce stops, bottom scraped up because of suspension bottoming out, interior cut up to get the crazy boom boxes/speaker assemblies put in, engine trashed because they didn’t bother to make sure oil and coolant levels maintained… etc. There may also be several dents if it didn’t get wrecked.
