It also won't work. If I bought a house for $500K with no money down(even nothing for closing costs in some cases), and I now owe $515K and the house is now worth $350k, 90 days and a frozen interest rate makes no difference. I'd be foolish to pay the bank $515K for a $350K house. Walking away is the only sane option for the homeowner. Any bailout would have to include $150K or more in debt forgiveness (or government contribution)to make it worthwhile, and so far that isn't coming.
z | 02.18.08 - 9:04 pm | #