1) Speculators: Screw them, let the bank hash it out,
2) Fraudsters: If they knowingly signed false papers, took cash out, etc.
Let them foreclose.
3) Morons: FB’s who have jobs, just don’t have the DTI, or FCF. I’d rewrite
the bankruptcy laws and let the banks get cramdowns or force repo’s and
resale wiht a clean hsitory.
4) The unfortunate: People who had an unexpected setback around the
time of the reset, but would have been able to afford it otherwise.
Encourage them to do workouts with the bank, particularly via
term extensions.
but, frankly a lot of banks need to eat this paper, and along with
a lot of hedge funds, who need some serious regulation.
