I was watching CNBC business channel today when I heard a great idea. Why not refinance all the people who have been making their payments faithfully without missing any. Under the current bank rules they want you to have 20% equity in your property. The appraisal has to show that you have this equity. However, since the bank is already on the hook for the money, who cares if the borrower is upside down on his loan if he is making his payments in full and on time. So let's reward the good guys. Refinance the good guys, lower their rates and put more money in their pockets. Thay way they will also have more money to spend to help the economy.
Banks don't get it...never did