These renegotiations sound like great deals. But for the most part we’re relying on anecdotal evidence primarily from people who didn’t even understand the terms of their first loans.
The broker friend may not even understand the terms of the renegotiated loans.
My gut tells me Deal Hunter is onto something:
Partial Claim – This is the hidden danger in “renegotiation” of loans. In addition to the rewriting of the loan itself, there is the issue of what happens to the unpaid late payments, unpaid penalties, or deferred interest incurred at the higher rate or payment recast.
