Given the mongo donations to the Katrina victims already, it would seem reasonable to use part of those to meet the mortgages, assuming the owner wants to rebuild on the same spot once reclaimed. At $500K a head and still growing that should be a no brainer, shoot most people with that could buy out their mortgage and have plenty left over.
However, I don't think most banks there are going to exactly lose their shirts if they forgive the mortgages, because there is going to be a land office business in financing rebuilding.
Local news just showed a segment from Baton Rouge, the real estate there is booming, the price of homes increased 20%, they had 3500 homes few months ago and just have 500 currently available for buyers. That's encouraging news. The person said that they are actually going house to house asking people to sell there is that much demand for housing there.
Sounds like they will be the next CA real estate boom ;)
I was hoping that would happen in our city here in TX, I would consider selling for the right price.
All we are seeing here in Dallas TX are the people screaming in the camera that they are angry because they are standing in the heat waiting for their debit cards. Supposedly the Fed Govt is supposed to reimburse Dallas to cover 60 days of bills for housing the evacuees and than Dallas is on their own and will have to pay.