As HLS commented the loan docs spell out all the conditions of loan and by signing them, the buyer is obligated to their requirements. The other thread talking about loan modification is what you are implying…. So basically yes can the loan servicer rewrite or essentially change the conditions of the loan at the expense of the investors. The question is yes but the latitude with how much they can change is something that is between them and the investors.
As for the govt…don’t get me started…How about Hillary’s idea for a foreclosure “break”… basically halting all foreclosures for awhile… or John Edwards house fund… even Bushes crackpot scheme… they all totally reek. Good thing that the housing dump isn’t being politicized…. and it is only Sept of 07!
