I predict riots and a revolution if there are loan balances cut for irresponsible homebuyers who lied about their income to buy a house that they cannot afford
BUT nothing gets done for those who played by the rules.
Loan mods do not lower a loan balance. They keep a FB in la-la land thinking that they own a house.
Keeps the govt from admitting how big the problem is and dealing with another FC.
1) If you think this is going to actually happen, I think that you are dreaming.
2)It is against constitutional law to interfere in private contracts.
3) If it did happen, who in their right mind would ever want to buy mortgage backed securities knowing that the principal balance could be cut.
They will offer mods and forebearance to some, but I don’t see many cuts in loan balances coming.
It will take a foreclosure and a new transaction to have a lower loan balance on that property.
Maybe someone can come up with a name for the revolution…..
Right now we need C.R.A.P.
Citizens Revolting Against Paulson
HLS
