Sounds crazy to me. If they just do it for homeowners who are delinquint, wouldn’t that encourage other folks to stop payments as well to get this deal?
And – if they cut a portion off the principal, and the indivdidual then sells and gets out even – well, that’s a no-win proposition for them as well.
But – if the good people at Chase Mortgage are willing to cut $50k or so off my $260k loan balance if I hold my payments hostage for a little while – hey, I’m all for it and sign me up.
I can imagine banks lowering payments for a short while for some folks, extending amortization schedules – steps that meet people halfway but still largely preserve lender income – but I can’t see them cutting off large (or even small) parts of the obligations that they have already paid to the happy previous sellers. Kwazy!
