Wouldn’t it just be simpler for the lender to let folks defer payments rather than give up principal? I mean, in terms of having to re-record the deed (or whatever is needed) and take an record an instant and signifigant loss on their books?
Maybe I’m not sophisticated in terms of understanding the banking/lending industry, but it just seems like this is the LAST thing a bank would want to do in terms of accounting priorities – and also, to a lesser degree – fairness and complexity issues.
