“The government will not write-off principal without homeowners giving up present or future equity. You’d have to be an idiot to agree. Better to walk away and be done with it.”
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The funny thing about this is we were all told that houses should be for “living in”, not making money.
The equity-sharing is absolutely necessary to prevent the neighbors (who could afford their payments) from trying to bail on their mortgages as well.
Besides, these borrowers should be grateful for getting reduced payments! What’s surprising to me was all the whining that FBs were doing about this portion of the principal-reduction plan. As if they are owed something!!!! I say they ought to be tossed in the streets if they don’t show some gratitude for all the effort going into “saving their homes”.
