How Bair is Creating a Generation of Debt Slaves
Mr. Mortgage explains it here.
Be sure to take a look at the loan modification doc, and see that nice balloon.
Mister Mortgage sez:
This modification makes the borrower a renter and debt-prisoner for life. This is not a financial solution for the borrower, rather a structure that lures the borrower into a terrible financial decision because it is cheaper to stay than walk away and rent. All of these new proactive loan modification plans by the law makers, regulators and bank are designed to do just this. A ’solution’ where the borrower still owes $840k on a $475k home and will never be able to refi or sell, should send them running.