Answer to your qeustion..homeowners should not lose value on their homes because someone next door went into default. The banks should be made to amend the appraisal system, at least for a few years while the foreclosures trickle away, that doesn't allow them to use short sales or foreclosures in their evaluating the value of a home that is about to be put on the market. Yes, Obama could have stipulated that when he handed the money over blindly to the banks; but he did not. So here we are. Punished for doing the right thing and being responsible. But, that would have been a solution.
Yes it is true that sometimes folks are forced into foreclosure because of reasons beyond their control. But, what I have seen more of is the homeowners deciding they don't want to forfeit one of their two SUV's or summer vacations to make their mortgage payments. I have had 4 friends and one boss in the last 2 years that let their homes go to foreclosure, filed bankruptcy (after buying new cars and boats and continuing their lifestyles) and then even walk away with a few duckets in their buckets from the bank after their foreclosed home was sold by the bank......and I and many other Americans are acting responsible and paying our mortgage and going without other luxuries to do so.
When is America going to award people for doing the right thing and stop rewarding people for doing the wrong things? Sometimes I have thought to myself...just let it all go to foreclosure...just declare bankruptcy....I'll be excused and be able to blame it on the banks and the housing market...
Shame on any of you readers who deep down in your hearts know you could have knuckled down and made things work, but instead walked on their responsibilities for the rest of us to suck up.