Realtor in Central Maryland.
Lots of good comments here. Those who argue the borrowers in default may go into default again should keep in mind that part of "helping borrowers who dont deserve it" is the governments assistance in expediting short sales. A property that is a short sale vs going back to the bank through foreclosure is better for everyone - including the neighbors that did not make bad (stupid, greedy, etc) decisions. Also, many of these borrowers are exercising "personal responsibilty" by signing promissary notes (or agreeing to do so at a later date) to make up part of the loan deficiency. So it is not all borrowers that are trying to walk away without consequence. I too agree that many of these borrowers do not deserve the help. And I agree that as a general rule, it is best to let the free market do its thing. But there are exceptions to every rule, and being these are extreme circumstances, it may be the right time to make an exception.
