Well, thanks for illuminating this practice, SD. I see why a bank might do this in certain situations. I’ll certainly look forward to seeing if it becomes something that actually becomes something that we hear more about. I still think it’s odd that they can’t figure out a way to reduce payments or change the amortization schedule rather than write off principal. These bankers must think the road back for the RE market is going to be a long one.
The funny thing is that they’ll probably get some of the houses back in forclosure, anyways, even with the principal forgiveness
