Decius wrote:

Peter Schiff, president of Euro Pacific Capital, predicts that many homeowners who have little or no equity will stop paying their mortgage and then reduce their income to get the biggest payment cut possible. They could stop working overtime or, if two spouses work, one could quit. After the modification, they could try to boost their income again.

"This is a once-in-a-lifetime opportunity," Schiff says. "People are going to feel like complete morons if they don't participate. The people getting punished are the ones who never made an irresponsible decision to buy a house they couldn't afford."

You can say that again.

This is a seriously asinine proposition. Quit a job? In this economy? Reduce your income and go into foreclosure on purpose?

We don't need to compound our financial woes by suggesting that responsible people turn irresponsible, or that they'll be "punished" for fulfilling their debt obligations on their rationally structured mortgage loans.

-janelane, spending 14%

RE: You Might Want To Think About Stopping Your Mortgage Payments and Reducing Your Income