“One thing that jumps out that Reducing Principal Balance is the lowest line on the chart and effectively zero. If borrowers are expecting significant principal reductions they will be disappointed. It simply won’t happen“
It’s important to note that the source for this article is a “The Department of Corporations” report. not some blogger or other un-reliable or un-documentable source.
Just as for the past few years we have had so many crying that they did not understand the terms of their liar loans….A few years in the future we will be inundated by stories of people who did not understand the terms of their re-worked loan.
Expect
“I had no idea my loan would reset to a much higher payment”
to morph into
“I had no idea any profits from a future sale went to repaying my principal reduction”
Just as mortgage brokers and greedy banks were the villain in part one of this mess, Mortgage modification professionals and greedy banks will be the villains in part two. Anyone thinking bankers are ever gonna start handing out gifts without strings…. is nuts.
