What is the difference SD? Bank owns the REO and the ex-owner now rents at $1000 per month instead of paying $3000 per month mortgage. Banks/dumbvestors get stiffed. No bill to taxpayers. Housing for ex-owners. Everybody wins (well, almost). Banks/dumbvestors take a bath. What is there NOT to like. Once bitten, the lenders will demand upwards of 40% down payment for any purchase. Debt bubble completely cured. Time to celebrate!
