[quote=dd123]Guys
There is no moral hazards/obligations here but pure business into play[/quote]
Completely agree. The borrower wants to live in a property/area he can’t afford for cheaper monthly payments (even if he never acquires any equity) and the lender wants to make sure he gets as much of the $$ he lent as possible and ALL the interest due, whether a little later or a lot later. The mods ensure the lenders recoup what is owed to them by the terms set forth in the mod and in whatever fashion they end up receiving the balance due, depending on future borrower behavior.
