Decius wrote:

I cannot emphasize the boost I think it would give the economy if we had a system that said to people whose homes are worth less than the mortgages that you can write down your mortgages to the value of your home if you can make the payment. Or you can extend the mortgage out and lower the interest rate.

This will never happen because it would require banks to actually loosen their deathgrip on the sla...er... borrower and take an immediate on-paper loss in revenue.

Nevermind that it's in their best-interests to absolutely not have the property go into foreclosure... that's another department's problem, and that department has underwriters to cover their losses.