I am just getting back on my chair after reading this blog http://activerain.com/blogsview/1243528/is-the-fdic-killing-short-sales-
It amazes (well is doesn't) how the government makes banks money, instead of helping the tax payers.
Since they are covering all these losses with banks, why not cover the exact same loss (or less) by simply paying down principal on loans and reducing mortgages for borrowers directly?
what's to say Mr Smith, here's a check for 144K, pay your loan down and refinance..
What's interesting however, is that the FDIC is urging their shared loss partners to help with forebearances and loan modifications: