Here's what I'm thinking: short-sales will go the way of the dinosaur and modifications will take its place. Why you ask? Because I said so...no really, think about it; where does our government get most of its money to function? Printing more money to inflate the dollar? Real close but no cigar.

TAXES! Yup, taxes. So what's happening with all of the 1099 tax that's being written off thru the Mortgage Debt Relief Act (Obviously a government funded program has been cut or eliminated because it relied on this source of revenue). My prediction is it will be recouped, not thru the multibillion dollar bailout monies, but end up on your paystub as an expense deduction next to FICA, FITW, etc. and camouflaged as FBSITY: Federal Bailout Stuck It To You. It would only be temporary--yeah right!

Anyway, the Act runs dry next year and the IRS will regain the loss back thru the tax but keep the new deduction in a fund set up just for the corporate parachute fund. OK, I fell and hit my head and don't make any sense, so here's my point: Tons of tax money is lost as a result of a short sale mortgage payoff. Wouldn't it make sense to modify an existing loan and keep the income stream flowing vs. damming it up like the Colorado River? It should if common sense prevailed.

You see, helping a struggling homeowner keep their home thru an affordable and manageable plan would do just this. Of course the homeowners income must be able to support it so bare with me and make an assumption out of yourself by assuming that they can afford to stay in the house. Hey I have an idea, if their income doesn't support a mod due to a wage, job loss or other life changing event that limits this function then let's take some of the bailout money and subsidize the wage, create a job or find a way that makes sense to sustain this household. We're becoming socialized anyway so why not spread the wealth? Now I definatly fell and hit my head. Back to my point: Keep the American Dream and Hope alive by keeping homeowners in their homes and not on the street. The tax benefit would be immense because the lienholder's won't be stuck maintaining a property for a loss of thousands of dollars while it sits vacant and a short sale is negotiated. The loophole to write down their losses would be reduced dramatically and the burden of who will pay this loss is removed, in most cases...Now our communities remain in tact and the distressed sales are removed from the playing field and everything is hunky-dorie--in my dreams!

Let's be real for a second. Humor me and play along. Once the banks find out where their piece of the bailout pie is they will jump on board and follow my prediction. In fact, it's because of this response that they will do what I said. No more short sales. If they can't modify a loan then go straight to an REO. Real Estate Owned, not REO Speedwagon, this way nobody's time is wasted trying to negotiate: offer, counter-offer, counter-counter-offer; for cryin out loud, STOP THE BLEEDING! Let's end this madness. Let's be efficient so that we can be effective, then we can be productive and the end result will be profitable for everyone involved. It makes sense...common sense!

Thomas Payne had the right idea...talk to me...let me know how wacked out I am or if you want more. Peace-out!