Part of the problem that I see with paying people to sell in a short sale is that MANY of these folks took out mortgages they couldn’t afford! Why should people that earn minimum wage be given a mortgage for a home in excess of $200,000?
And who gets screwed when the loans are forced to take these lesser amounts? WE DO, the taxpayers that bought a home we could afford and have made all our payments! Interest rates will go up because banks will be more afraid to lend, thus we all pay.
Just to set the record straight....Most of the mortgages you see being defaulted now are ones that are victims of the bad economy and layoffs and fannie freddie government sponsors ponsie scheme. The first and second wave of foreclosures were the ninja loans and illegal federal loans. Everything from here on out are just regular folks that are now caught in the Tsunami. Talk to your neighbors. Most of them are underwater. Some or most of them have been laid off, took a cut in pay, reduced hours and are seriously considering bailing out. These are middle class honest and hard working people.
The banks never wanted the house, they wanted the promissory note to bundle. The house was just a crackerjack prize.
You are looking at the wrong target.