Actually loan rewrites/forgiveness/whatever you want to call them is something that Piggs should be very much against.
1 – Will you get dinged on your credit? Maybe/Maybe not. Credit scores get dinged if your creditor makes a report to credit agencies. What follows is speculative by me but if you are simply negotiating a deal with the lender it seems that this is kind of a voluntary deal and you could most likely strike the deal where the lender will not make a report to the credit agencies that will affect your score. Again that is a SPECULATIVE STATEMENT.
2 – What is far worse though is that this is a very real way to accomodate the bearish point of view without affecting comps. What if we had tens of thousands of rewrites? There is no formal way for an appraiser to figure out which homes were forgiven. If you look at the tax roll the new loan will simply look like a refinance. Who is to say which tax rolls were forgiveness acts and which were true refinances. You see what I am saying?
From the perspective of a person who wants to buy, who wants to see the depreciation continue, I am very much against these sorts of rewrites.
