I agree it cannot fix the entire problem. Its just an attempt to get people to open their eyes to possibilities and the power of what is being done. Here are a couple counters:
If the payment is low enough it can be comparable to rent so why not stay?
When prices were in freefall some people strategically defaulted because they thought they were going even lower. Now that things have stabilized there is more to be hopeful about.
Some people had temporary and possibly continuing loss of income. Living mortgage free for 2 years cvan heal wounds and allow people to build reserves back up. I have seen it many times on short sales I have completed.
The declines vary everywhere. If I’m not mistaken you are up in Temecula where declines are typically 50%+. Where I am, declines are under 20% in most cases so a buyer that put 20% down can be in a zero equity situation (i.e. cant cover selling costs without coming to the table) but isnt far underwater.
These are just a few and there are plenty more. What got me here was challenging the assumption that anyone who hasnt paid is DOA after a couple months. Looking at the actual numbers, I found that a buyer could be saved after 2 full years under some circumstances. I like to challenege the status quo and I did. The results surprised me too.
