Well, the Banks aren't thinking clearly here. The properties are no longer worth the fraudulently inflated prices they were originally sold for. The desire of the mortgage holder to renegotiate the mortgage, even by reducing principal, indicates a desire to continue paying on what was a Bank backed con to start with. The only logical alternative for the underwater mortgage holder, if the Bank refuses to negotiate, is to abandon the property, and leave the Bank to deal with it. What is it now? One out of four American Mortgage holders is underwater? It was an Institutional Fraud that put these individuals into their homes in the first place. If the Banks don't want to renegotiate the mortgage, I see nothing immoral about the homeowners just walking away. A contract is just a glorified piece of paper, and lawyers make as much money breaking contracts as making contracts.
For those with sympathy for the Banks, I'm sure they will recover the original value of the properties in 40-50 years or when hyperinflation renders a million dollar mortgage a bargain.
Read the Article at HuffingtonPost
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