Not positive equity, serious negative equity.OK...how about this...(not a true story)
There is a guy I know who had an idea and wanted to start a company that revolved around the idea. He invested his savings and began his venture. Things were going well for him as he expanded and hired more employees. However, whereas the demand for his product was there, the long life of his product (he spent time and money ensuring superior manufacturing and using top quality materials) the demand rapidly faded as he saturated the market. IN esence his idea was a good one but his desire to put out a quality product proved to be his downfall. He pumped much of the money he made into R and D in the hopes he can come up with another product to sell....but he ran out of funds and had to shut down...losing everything.
We all have been put in positions to make decisions...sometimes we win and sometimes we lose...but it is the desire to win that keeps us going.
But anyway......do we help the guy you know with the house? If yes, do we help the guy I know with the failed business?
Maybe the guy you know should not have bought a house knowing he and his wife were on government contracts? Maybe my guy should have made his products out of cheeper materials and screw over the consumer?
Wonder if you see my point.
I see your point but many aren't seeing mine which is simple. Too many here believe that all the recipients of "government welfare" (so to speak) are do nothing, low life mooches, always have been, always will be.
None of us own a crystal ball besides which, your story is different in one very key point, the business owner made a conscience choice (about his product) and suffered as a result, the guy I know made all the right choices, based on the information he had at the time and is now suffering the consequences because of forces beyond his control.
That couple would qualify for the FHFA mortgage program Obama is claiming was his idea, so they can get help. In fact, given the fact that they have built up equity in their home, they could probably refinance their mortgage without the FHFA. The actual likelihood they will loose their home only if they insist on not taking reasonable steps to make sure they do not.