[Kartographer]

So how stupid does that make me for continuing to pay my mortgage?

[edwinland]

From the article:

“The problem is highlighted by a routine case in Phoenix. Chris Paul, a real estate agent, has a house he is trying to sell on behalf of its owner, who owes $150,000. Mr. Paul has an offer for $48,000, but the bank holding the mortgage says it wants at least $90,000. The frustrated owner is now contemplating foreclosure.

To bring the various parties to the table ... the government intends to spread its cash around.

Under the new program, the servicing bank, as with all modifications, will get $1,000 ...”

So the bank wants $90,000 but the only offer is for $48,000, a $42,000 loss. It boggles the mind that the government (and the reporter too!) thinks that giving the bank $1,000 (reducing their loss to $41,000) is going to do anything at all.

[lucky american]

Say I have a house and I quit making payments. I paid 150 thousand dollars for it.
The bank says it will foreclose on me,I get cousin Vinnie to make an offer for say 50 thousand, which the bank has to accept.
I now have my house, payments are lower, and I get $1500.00 cash back?
That's a good deal.