People underwater with non-recourse loans have every right to do just what the banks have done:
—Banks do what is good for their balance sheet,
—What business does: What is good for their balance sheet (including laying off employees if necessary)
—Why shouldn’t people who have been responsible not be able to do what is good for their balance sheet and walk away.
I would never refinance and take a recourse loan when I have a non-recourse loan. IMO, the housing market has not hit bottom yet and these people will only lose more money.
There is nothing being offered to help the responsible people, beware of the small print.
Indeed, the responsible people will be robbed to help the irresponsible - as usual. Sad thing is, a lot of responsible people in some areas will be dragged down by the irresponsible around them.