It’s a Matter of Principal – HAMP’s New PRA

"It seems like people have been talking about reducing the principal balances of underwater mortgages as a way of addressing the foreclosure crisis almost since the crisis began. The thinking seems to be that if people weren’t so far underwater, there would be fewer foreclosures. I’m not sure anymore… maybe that’s true to some degree. But, would that really stop today’s foreclosure crisis? I suppose, like anything else, it would depend on who qualified for the program."