[Walkenfree]

If she owned a house in California, (which is not a
deficiency state), the Mortgage Insurance pays the banks
25 per cent of the original balance, the banks loss is
usually offset by the mortgage insurance. AIG(underwriter
for the mortgage companies) got bailed out.Actually the
loser was the consumer. That’s what ticks me off!
Why didn’t they bail out the consumer by refinancing at
the current value and rate? Then the economy would correct
itself.

[Niteflyr]

Why didn’t they bail out the consumer by refinancing at the current value and rate? Then the economy would correct itself.

Sooo...in 1994 when my mortgage was upside down the government should have stepped in and reduced my interest rate and principle every time there was a decline???

[MrEdd]

Because the consumer doesn’t finance socialist political campaigns.