Auntie M

What is available for the people that bought during the height of the mortgage loan ponsi scheme, which is how I define this housing mess, so that they don't have to carry burdens that are not really theirs? My son purchased a house in 2005 and can afford the monthly mortgage, but it is an extremely unwise investment at this point as most of his money is now going down the toilet. He is not eligible for any "bail out" money, but shouldn't the banks, the primary parties responsible for the over-inflation of properties, be required to do the right thing here? If not, should my son just walk away from the property, resolving to take the hit and ruin his credit in order to make better investments elsewhere that he will surely need in his old age? By the time he retires I'm sure government will have found a way to justify eliminating everyone that paid into the system for retirement expenses as SS benefits and Medicare will no longer exist, except maybe for illigal aliens and anyone who has not contributed. Believe it or not, I've raised him to do the right thing, but way too many people, especially our elected officials, have done the wrong thing and doing the right thing just may not be feasable or sensable at this point. He has two loans through the state. The first 5 years was interest only, which was a very good deal for the state, but not for him. Next year he will begin to pay on the full original loan, which is now only valued at about 40% of what he purchased the property for. Does this make sense to anyone but the banks who have been allowed to practice loan sharking for many years? Another aggravating component is the PMI, which will not be going away for a long time, if ever. HELP! Any information on what is available to people like my son is greatly appreciated.