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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Jim McMannis who wrote (76416)	4/20/2007 12:14:47 PM
From: Think4Yourself	Read Replies (3) \| Respond to of 306849

Better less money than lose money. If someone is about to see their payments double it's a good time to look around and realize they are underwater and their house is losing value on the market. what happens to the bank when the rational borrowers hand over the keys and walk away? It's especially relevant when the house is in an area only subprime borrowers would be willing to live. WaMu is doing damage control.

To: Jim McMannis who wrote (76416)	4/20/2007 1:06:38 PM
From: benwood	Respond to of 306849

I suspect that it's more akin to settling a frivolous lawsuit which you could win of course but it would cost you far more in time, energy and money than just giving a small payout. Plus a flood of foreclosures would likely depress the real estate market, making it more likely that others will simply walk away and accelerate the carnage and make recovery of the entire sector that much more difficult. Could be some support in the wings though... don't know if we'll ever find out. Even if not, though, I could see that WaMu could simply do better (less worse) with some give on their part. Plus it's not bad PR.