[quote=harvey] . . . There’s no reason for anybody to take a reduced rate without a principal reduction. Because owners in this situation have much better alternatives . . . [/quote]
Ummm, no harvey, “owners in this situation” DON’T “have much better alternatives.” Many of them have been “scamming the system” for so many years now that their credit is beyond shot!
This group will be extremely lucky to find a landlord who will take them in the tight CA coastal market but that is not my problem.
It is LENDERS who should be calling the shots here, NOT the recalcitrant, slovenly fools who have borrowed themselves into oblivion and will now sign up for any program that promises to “save them” from their stupidity (and, of COURSE, “forgive” the debt they already spent for their vehicles and vacations, etc).
FORECLOSURE is the answer, so the rest of us, who paid our mortgages on time all these years, no matter how difficult it was for us, can finally recover from the “great recession.” Some of us need a revitalized neighborhood with a higher calibur of more well-heeled and credit-worthy homeowner-borrowers to come in and take over these monstrosities at any price and begin rehabbing them after being let go to waste by longtime squatting “hopeful short-sellers.” Yes, all-cash purchasing flipper teams are also welcome. Bring on the foreclosures!
