Ok, correct me if I am wrong. One of the best ways for this problem to be solved is through principal reductions.
Is this across the board for all mortgages or just failing ones? I have lived within my means. While others used their houses for ATM machines and cash out re financed like mad. My cousin’s houses they knew going in the could never really afford ( 600K house with less than 100K income, they got no down no doc option arm ) and really were just renting from the bank. So how can we as a society tell whether a loan was just living the high life and do we care? Banks should take hair cuts for moral hazard reasons ( they haven’t ) and obviously bad consumers as well.
The lenders totally in the wrong, so were the appraisers, and the title companies (in PA) But