Mortgage Modifications, Which one will you be?

A and B are neighbors, similar house, and moved in around the same time, borrowing about the same amount.

In March 2008, A got a call from his servicing company, "Countrywide", informing him that according to the computer program purchased by the Treasury, his house has fallen in value below the loan he owed. He is forgiven the the difference, which amounted to be $100k.

B was surprised, envious, but he acted as a gentleman. He said, "more power to you". He inquired to his servicer, and was told that the computer program thinks his house INCREASED in value. Therefore no cheese for B.

A year later, after increases in Federal, State, and Real estate taxes, B with higher home values ended up paying $10k of the $100k forgiven from A. In 10 years, it would look as if nothing happens as A is blessed by the power that be and given authority to rob B.

Will you end up being A or B?

Do you think either is fair?