<p>WashDad- the big laugh I get from the flat tax folks is the elimate the IRS argument. Who do these folks think is going to make sure those collecting the flat tax actual send it to the government. Also what agency is going to make sure thax the flat tax was charged correctly- I can guarantee that certain transactions will be exempt from the flat tax and some businesses will collect the tax but tell the government the transactions were exempt and pocket the money.</p>
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<p>Momneedadvice–I hadn’t focused on the fact that the new loan would have not been “regular” since the property was underwater. The bank wouldn’t be able to sell the loan until there was equity. It’ll have to hold it for a while.</p>
<p>I didn’t get the idea that the bank lowered the balance (in fact, I’m sure that they rolled into the new principal the missed payments). The borrowers showed that they were very committed to paying the mortgage. That had to mean something to the bank.</p>