If they do a 4.5% loan for 30 yrs, are they offering it to those already in homes?
One other thing that’s bugging me. Any loan mods that include principle reduction, there should be some way to indicate the “new” value of the house. It should be a new comp.
If they bought for 700k and the bank is cutting them a break and now they’re reworking the loan and making it 600k or 500k, they’ve lost however much value. Other houses in the neighborhood will be looking at sales and see that it sold for 700k, but the reality is that the bank has, in effect, declared it is worth much less.
If they do these loan mods, what effect will it have on comps? How can you determine the real value? Do you have to go to county and check on everyone’s loans and see who reworked it? That’s going to be burdensome.
