[Night Hides Not]

Time to offer loan mods to underwater borrowers that includes writedowns of principal.

Banks won't like it, as they'll have to recognize the hit on their books.

Borrowers that pay on time won't like it, as it's unfair to them...they were doing the right thing.

I don't much like it, either, but this economy's going nowhere until a bottom in the real estate market is established.

Without a 'floor', the best we'll see is treading water.

[Notary Sojac]

Correct. Soundness in the financial system requires that mortgage holders' balance sheets be written down to market clearing levels.

As far as I can tell, both Democrats and Republicans are tap dancing around that fact in a manner that would do Gene Kelly proud.

[Codeflier]

If the banks start forgiving principal, I am going to initiate a lawsuit. My house is down in value but I am not underwater.

However, I'll be damned if I sit by and let other people get freebies while I continue to pay as agreed. I think selective principal reductions will bring a major class action lawsuit by millions of people like myself who have met the terms of my contract.

This talk of principal forgiveness infuriates me!