You guys aren’t taking into account the fine print most definitely assured to be on the principle reductions contracts. The gov’t will be guaranteeing the loans and trying to place the paper. These will be full-recourse loans and just think what happens if the owner gets underwater later or into trouble with the rising unemployment rates and further deflation. You will owe the loan whether you get foreclosed on or not and the gov’t will collect.
Principle reworking will be the dumbest mistake the homeowner can make rather than let the house go and buy it back years later for maybe half of the price.
