If it passes, it would only help those who file … and eventually “discharge” a Chapter 7 BK … or possibly a Chapter 13.
As an “underwater debtor,” what’s the incentive to CARE whether their FICO score tanks 100 – 300 points for a foreclosure if if will tank 300+ points for filing … and discharging a Chapter 7 BK??
The BK “victims” (lol) have been and are already “paying the price” in their severely-lowered FICO score and l-o-o-o-ong wait to be treated like a human being with integrity again by the “real world.”
I could care less if this passes. I’m for it with the provision that the debtor/delinquent “trustor” has to file (and successfully discharge) their BK case in order for the “forgiveness” to happen.
In doing so, they have paid a MUCH HIGHER price than if they just walked from the property and let it foreclose. Granted, they get to stay in their homes with SOME debt forgiveness but in my mind, the price is too high. To each his own :={
