Reducing delinquent loans to current market values; JUST DO IT!

Reducing delinquent loans to current market values;  JUST DO IT!  It seemed very apparent to me and many other Realtors slogging the streets every day, meeting with Sellers considering their options as they could not make their mortgage payments, consoling them, truly wishing we could help them, that there is a solution!  Reset their mortgage payments to current market value!  I know that Sellers that have taken Income reduction or that are just re-evaluating the "smartness" of continuing to pay a mortgage on a property that has lost 50% of it's value, would most likely stay in their homes.  Set the loans to current market value plus a small % so the Lenders would feel it was worth their time, and JUST DO IT! 

The longer we allow the banks to call the shots, to keep properties on their books at hugely inflated prices while the homeowners are vacating solely due to their unmanageable loans just means more Foreclosures, more vacancies and more neighborhoods in distress.  Here in La Quinta and the Coachella Valley, we have been hit hard..for over 3 years now.  The continuing stubborness of the banks is insane..and unacceptable.

I understand the argument.."why let those Buyers off the hook?  They should have known.."  No matter how you feel about this one, the reality is that we MUST stop the foreclosures, keep people housed, and stop the declining prices..AND do it NOW!  Three years is long enough.  Any goombah can see that it is going to continue with our unemployment and state debt what it is..so get over the morality issues and just do what's best for the State and the people living in it..DO IT NOW! 

On Friday it was announced that Lenders would receive more incentives to reduce the mortgages on delinquent loans to current market values..or close.  I would prefer they get NO incentives, but if this is what it takes to get them off the mark, then it's a start anyway!