I can certainly understand your argument. It’s too late at this stage to worry about fairness and moral hazard. But some people are going to fume over this. I’m not even talking about “responsible renters”. I’m talking about those homeowners who bought at the top and put sizable downpayments. They will see their neighbors’ loans written off, while their downpayments vanish.
In this bizarro world we’re living in, zero-down buyers have the upper hand; 30% down buyers are screwed.
