As someone who bought a house in 2005 and knew he was likely overpaying, I certainly need to take Roger Ehrenberg’s advice.
Many also need to come to terms with modifying mortgages for millions of homeowners on the edge. We can argue forever about how it’s not fair, the borrowers screwed up, etc., but we are way, way beyond the point where intellectual jousting will help us achieve a better outcome.
However, I am a firm believer that the more fair approach would be for the government, and the taxpayer, to be a participant in the upside associated with keeping the bailed out borrowers in their homes. As Jeff Minch, a guest poster for Fred Wilson stated:
The government should get an “equity kicker” for their trouble. If you participate in the plan and peg a new value on your home, then the government should get either a par payoff of a 25% equity kicker above the marked down price for the next ten years.
I don’t know if this option is technically possible, or was even explored, but I would have liked to have seen it included in the governments plan.