The purpose of the bailout (of which workouts are a component of) has nothing to do with kind heartedness to homeowners. We have been through this right? It is simply to try to keep some trickle of a return to investors. You cannot do that by a “rapid workout”. All you will do is get another month or two of payment and the homeowner will belly up and default again… and again… and again. In fact it is probably much more of a pain in the butt to rework a loan then it is to simply suck up the short sale or let the property go reo.
For the other post about walking away with the deficiency, as a homeowner if you do indeed have a recourse loan then yes you have to cope with the possibility of that deficiency following you around for a long long time. However you can also get the lender to release you from that deficiency if you negotiate with them even if the loan is a recourse loan.
