thanks for your prognostication. As always, you seem to have a keen understanding of these matters and convey your thoughts with clarity.
Has anyone suggested or heard of the government providing down payment assistance? It seems to me to be a much easier proposition to let those who truly can’t afford their debt to foreclose and then provide the bank with assistence on the back end by letting the house sell for close to what the original mortgage was worth. This can be achieved by providing some sort of first time buyer down payment assistance of 15-20%. If combined with current interest rates this would get credit flowing again. It would also take away the moral hazard of people defaulting on payments just to get their principal reduction.
