Everyone is free to negotiate with the banks.

Everyone is free to negotiate with the banks.
Everyone is free to negotiate with the banks and the banks know that they are up against the wall with the massive drop in home values. There are people that are willing to walk away from their homes if the mortgage is twice the value of the property. It is a business decision. The banks, bankers and the press have tried to create a smoke screen with homeowners in order to keep the upper hand.


The smartest thing to do is to go right to the bank and negotiate your loan and terms if your collateral value drops 60 %. Why are people trying to hard to take freedom of choice away from a borrower? The banks have gotten their bailout and now they want to move on and start over leaving the homeowners in their wake. It makes perfect sense for the banks. They have not had to suffer any consequences of their self created securitized system.
The reason we are seeing so many more defaults is that the banks have dug in their heals, refusing to take any responsibility for this crisis. They will continue to blame the home owner until home owners stand up and fight back.
If you have a mortgage worth 500,000 and a home value of 250,000 you have a major problem. I understand that some people have fallen for the moral argument that is based on honesty and truth. However, there is no honesty in truth in sacrificing your future, or the future of your children, in order to say you “kept your word.”
The system has always been manipulated to the banker’s advantage. The old rules of keeping your word and following through to pay your debts to the local banker do not apply anymore. Back when you had one banker to go to that knew of you and your family, we all can understand the moral issues of walking away from your responsibility. But at the same time the banker also had the moral responsibility to consider changing situations of borrowers and be willing to make adjustments to loan terms when necessary. It was a two way street and it worked well for a long time because we knew where the note was held and bankers had to consider making a business decision to keep collecting payments, even if they were less, so cash flow remained.



Our system today has been taken away from the people and put into the hands of Wall Street. They took over the mortgage system because they saw a way to exploit it. The made billions while American’s were left powerless. At one time knowing your banker was a given. Today people are treated as a number to be used, exploited and discarded after the commissions have been made by the fat cats.



All people want is a fair shot at negotiating their contract. The situation, with so many underwater borrowers, is the anchor we will never be able to raise if the banks continue to exploit the government and borrowers.