I just read in Florida Realtor Magazine that Pam Bondi, Florida Attorney General expressed concern over the “moral hazard” created when loan servicers renegotiate loan terms. Are you kidding me?? With all due respect to Ms. Bondi, I don’t want to categorize all attorney’s and politicians the same but they are certainly the ones that SHOULD be talking “morals” . However you have Weiner sending lude photos to someone other than his wife and fails to resign, Charles Rangel writes the tax code but forgets to pay tax, no consequence, Eliot Spitzer hires prostitutes and gets his own show on CNN. I could keep going but you get the point.
By not re-negotiating a few loans, (i.e. – reducing principal) 4 years ago you have cost everyone, even those without mortgages 40 – 50% of their homes values! The foreclosures must stop in order to re-bound, and I do not see any other way to do it other than re-negotiating loans and most importantly reducing principals. Yes now it is going to cost alot of money however your inaction is costing alot more!!