That avenue has its flaws. If u did what you suggest.... Home sales will reach an all time low, economy tanks and finally the big kicker, home values collapse. Think the thought thru. If no buyers then prices need to come down dramatically.
My thought which has its flaws as well is for fnma and fmcc to use there profits and actually payback taxpayers by principal paydown, not writeoff. Investors get smaller return but take no principal loss, they can reinvest in good paper because the borrower is no longer upside down and can afford the payment. Villages, towns, counties and states get a big shot of money because taxes can be paid again.
There are still to many underwater homes and foreclosures due to the abuse and lack of oversight by banks and fnma and fmcc. Why not go avenue that best helps people. Fix the loan, if homeowner can afford a mtg equal to 90% of value of home then paydown the loan. If they can't find investors to buy house and make up difference so ex homeowner can walk away with 10% equity which can only be used to buy a more affordable home. If fnma and fmcc paid this with profits rather than throwing it into a black whole called the government then we can actually get out of this mess and fix EVERYTHING. Company becomes true heroes, they get true freedom and stock flies everyday.
Sorry for the rant.
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