I don’t have a problem as long as it is only for non-recourse loans. i.e. no HELOC/Re-fi hanky panky. Plain homer buyers who did a stupid transaction deserve tax forgiveness. If needed, this can be combined with bankruptcy law to prevent any asset siphon off cases.
The simpler folks deserve sympathy for another reason. Think of all those multi-million $ homes (like the ones that fell in La Jolla); when they go upside down, don’t think the fat cats get creamed. They would have corporatized/trustified/off-shored all their assets so that they win any appreciation and let the lender eat any loss. Hence, letting fat cats unscathed and punishing Joe (& Jill) 6P is unfair and borders on unethical/immoral.
