First off, casual coctail party conversation cannot be deemed reliable. People tend to ommit things and overstate the positive. Secondly, without seeing the fine print, you can’t tell if they have sold off half their potential future profits as is the case with all reworks and principal reductions thus far.
I can’t tell you how many people described the option arm loans inaccurately in 2005, most saying that they will pay it off in 30 years by paying the lowest amount, people actually think these things and can’t be faulted for not understanding complex formulas.
Don’t be envious of these people, they are in debtors prisons, none are paying the same as rent and none are building any equity, yet most wont benefit from appreciation when it does come. So far, everything I’ve seen to “keep people in their home” only serves to “keep them from ever owning their home.”
