You see what people owe and think what they heck were they thinking? Then remember that they bought w/the intention of flipping, b/c after all, real estate is just expected to continue to go up forever.
Then you think, why would they do a loan mod and continue to owe so much when it’s worth a fraction of the loan amount. Even if they get a fixed lower rate.
Then you think, what if they lose a job, which is very likely, since our unemployment continues to rise.
So I guess the answer is, you don’t pay your mortgage, you live there for free for a year+, you lose your job and collect unemployment for 2+ years.
