Reply #44: That works IF someone stays in the house full term, pays off the mortgage [View All]

[Phoebe Loosinhouse]

and sells at a price that pay off the lien. But, most Americans stay in a home somewhere between 3-7 years, so it wouldn't help most in that situation.

I would suggest taking the amount of negative equity and converting that into a "silent second" mortage at 1% interest that gets folded into the payment with the primary mortgage. I can't see why this wouldn't work.