OT-What a loan modification with principal reduction really looks like

[sdrealtor]

FYI, the reduced principal is due upon the note reaching maturity so if he makes it to the end of the term he owes the $40K at that time.

As for it being unusual, it is one of the infamous Obama HAMP modifications and I beleive they are pretty standard in design. I read the actual loan docs so I know exactly what he’s getting. Of the people you know, have you actually seen the loan docs?

I am not in the business of lending and if I was the terms would be set at the outset. If we needed to renogotiate down the line, we would have to and it happens all the time in contracts across the globe. My saying they are not taking a loss has nothing to do with putting my money where my mouth is smart ass. The deal was made and turned sour but that doesnt in and of itself create a loss. They are making the best of it and still in a positve net situation which is a gain.

[sdrealtor]

pem
as for it being a big assumption, I dont think it is.

when was the last time passbook savings rates were more than 4.75% and did they stay that way over a 30 year period? I dont think CD rates have been much higher than that over an extended period either. I’m sure there were times they were (heck my parents locked up 15% rates in the hyper inflation days which lasted several years until they got called) but show me long term rates higher than that from banks.

[sdrealtor]

pem
as for it being a big assumption, I dont think it is.

when was the last time passbook savings rates were more than 4.75% and did they stay that way over a 30 year period? I dont think CD rates have been much higher than that over an extended period either. I’m sure there were times they were (heck my parents locked up 15% rates in the hyper inflation days which lasted several years until they got called) but show me long term rates higher than that from banks.

[sdrealtor]

pem
as for it being a big assumption, I dont think it is.

when was the last time passbook savings rates were more than 4.75% and did they stay that way over a 30 year period? I dont think CD rates have been much higher than that over an extended period either. I’m sure there were times they were (heck my parents locked up 15% rates in the hyper inflation days which lasted several years until they got called) but show me long term rates higher than that from banks.

[sdrealtor]

pem
as for it being a big assumption, I dont think it is.

when was the last time passbook savings rates were more than 4.75% and did they stay that way over a 30 year period? I dont think CD rates have been much higher than that over an extended period either. I’m sure there were times they were (heck my parents locked up 15% rates in the hyper inflation days which lasted several years until they got called) but show me long term rates higher than that from banks.

[sdrealtor]

pem
as for it being a big assumption, I dont think it is.

when was the last time passbook savings rates were more than 4.75% and did they stay that way over a 30 year period? I dont think CD rates have been much higher than that over an extended period either. I’m sure there were times they were (heck my parents locked up 15% rates in the hyper inflation days which lasted several years until they got called) but show me long term rates higher than that from banks.

[sdrealtor]

jp
For the time being it does look like he’s renting it but he gets the upside which I doubt your landlord would share with you. he also gets to stay in the home he has lived in for a decade and does not have the cost or burden of re-locating.

[sdrealtor]

jp
For the time being it does look like he’s renting it but he gets the upside which I doubt your landlord would share with you. he also gets to stay in the home he has lived in for a decade and does not have the cost or burden of re-locating.

[sdrealtor]

jp
For the time being it does look like he’s renting it but he gets the upside which I doubt your landlord would share with you. he also gets to stay in the home he has lived in for a decade and does not have the cost or burden of re-locating.

[sdrealtor]

jp
For the time being it does look like he’s renting it but he gets the upside which I doubt your landlord would share with you. he also gets to stay in the home he has lived in for a decade and does not have the cost or burden of re-locating.

[sdrealtor]

jp
For the time being it does look like he’s renting it but he gets the upside which I doubt your landlord would share with you. he also gets to stay in the home he has lived in for a decade and does not have the cost or burden of re-locating.

[jpinpb]

[quote=sdrealtor]jp
For the time being it does look like he’s renting it but he gets the upside which I doubt your landlord would share with you. he also gets to stay in the home he has lived in for a decade and does not have the cost or burden of re-locating.[/quote]

sdr – he gets the upside after how long? And that’s if there is any profit left over after he pays what he owes the lenders that are giving him a break now.

He gets to stay in the home – or he has to stay in the home. Sometimes moving is not a burden. Renters are not stuck. They move to a better place, smaller or bigger or better location. If they get a better job offer, they don’t have to worry about having to sell or rent out their place.

The landlord doesn’t share his profit w/a renter, if he has one after he pays the PITI (and MR/HOA) and maintenance). That’s true. The renter also has cash that is not tied in real estate that can be used to invest as he or she wishes.

But I don’t want to make this about owning or renting. I have done both and though I rent in San Diego, I own properties. Good and bad to both.

In the case of your friend’s loan mod, he/she must love this house and plans to be there long term.

[jpinpb]

[quote=sdrealtor]jp
For the time being it does look like he’s renting it but he gets the upside which I doubt your landlord would share with you. he also gets to stay in the home he has lived in for a decade and does not have the cost or burden of re-locating.[/quote]

sdr – he gets the upside after how long? And that’s if there is any profit left over after he pays what he owes the lenders that are giving him a break now.

He gets to stay in the home – or he has to stay in the home. Sometimes moving is not a burden. Renters are not stuck. They move to a better place, smaller or bigger or better location. If they get a better job offer, they don’t have to worry about having to sell or rent out their place.

The landlord doesn’t share his profit w/a renter, if he has one after he pays the PITI (and MR/HOA) and maintenance). That’s true. The renter also has cash that is not tied in real estate that can be used to invest as he or she wishes.

But I don’t want to make this about owning or renting. I have done both and though I rent in San Diego, I own properties. Good and bad to both.

In the case of your friend’s loan mod, he/she must love this house and plans to be there long term.

[jpinpb]

[quote=sdrealtor]jp
For the time being it does look like he’s renting it but he gets the upside which I doubt your landlord would share with you. he also gets to stay in the home he has lived in for a decade and does not have the cost or burden of re-locating.[/quote]

sdr – he gets the upside after how long? And that’s if there is any profit left over after he pays what he owes the lenders that are giving him a break now.

He gets to stay in the home – or he has to stay in the home. Sometimes moving is not a burden. Renters are not stuck. They move to a better place, smaller or bigger or better location. If they get a better job offer, they don’t have to worry about having to sell or rent out their place.

The landlord doesn’t share his profit w/a renter, if he has one after he pays the PITI (and MR/HOA) and maintenance). That’s true. The renter also has cash that is not tied in real estate that can be used to invest as he or she wishes.

But I don’t want to make this about owning or renting. I have done both and though I rent in San Diego, I own properties. Good and bad to both.

In the case of your friend’s loan mod, he/she must love this house and plans to be there long term.

[jpinpb]

[quote=sdrealtor]jp
For the time being it does look like he’s renting it but he gets the upside which I doubt your landlord would share with you. he also gets to stay in the home he has lived in for a decade and does not have the cost or burden of re-locating.[/quote]

sdr – he gets the upside after how long? And that’s if there is any profit left over after he pays what he owes the lenders that are giving him a break now.

He gets to stay in the home – or he has to stay in the home. Sometimes moving is not a burden. Renters are not stuck. They move to a better place, smaller or bigger or better location. If they get a better job offer, they don’t have to worry about having to sell or rent out their place.

The landlord doesn’t share his profit w/a renter, if he has one after he pays the PITI (and MR/HOA) and maintenance). That’s true. The renter also has cash that is not tied in real estate that can be used to invest as he or she wishes.

But I don’t want to make this about owning or renting. I have done both and though I rent in San Diego, I own properties. Good and bad to both.

In the case of your friend’s loan mod, he/she must love this house and plans to be there long term.

[Author]

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