Way more then quite possible. Mostly probable is a better description. It will mostly work out per the plan that will be discussed on April 9th. A new loan will be created based on the current value of the home. The FHA will insure the new loan. The old loan will be wiped out and the bank will take the write down. What is not being discussed publicly is that the government will more then likely “make sure” the banks do not go under do to the write downs. I would presume the new loan gets taken on by either one of the GSEs or some other entity.
Can you say presto?
Soon it may not be much use to look at loan reset charts.
