Helping Bubble Victims
In short, there is no way to help these people. They screwed up major, and they will walk away from these mortgages. Let it happen, let the prices fall, and let people who know how to deploy capital wisely step in to buy when the price is right.
"We're in so deep that it doesn't seem like anything will help," said Rebekah Ao, 33, a pregnant homemaker who lives in a new four-bedroom home in Avondale with her husband, Otto, a truck driver. The Aos, with $50,000 in income, owe a total of $607,000 on mortgages for two houses they bought since they moved to the Phoenix area about two years ago.