“Renegotiate” Your Loan – banks giving in to buyers in distress

[Rt.66]

joestool That was just hilarious and full of truth and wisdom all at the same time!

Whoever Misscotroneo is we owe them a small debt of gratitude for providing a spark to the forum. A little fun while we wait for this train wreck to play out huh?

[pencilneck]

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.

[pencilneck]

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.

[pencilneck]

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.

[pencilneck]

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.

[pencilneck]

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.

[Rt.66]

From “Principal reductions” link:

http://effectivedemand.blogspot.com/2009…

“One thing that jumps out that Reducing Principal Balance is the lowest line on the chart and effectively zero. If borrowers are expecting significant principal reductions they will be disappointed. It simply won’t happen“

It’s important to note that the source for this article is a “The Department of Corporations” report. not some blogger or other un-reliable or un-documentable source.

Just as for the past few years we have had so many crying that they did not understand the terms of their liar loans….A few years in the future we will be inundated by stories of people who did not understand the terms of their re-worked loan.

Expect

“I had no idea my loan would reset to a much higher payment”

to morph into

“I had no idea any profits from a future sale went to repaying my principal reduction”

Just as mortgage brokers and greedy banks were the villain in part one of this mess, Mortgage modification professionals and greedy banks will be the villains in part two. Anyone thinking bankers are ever gonna start handing out gifts without strings…. is nuts.

[Rt.66]

From “Principal reductions” link:

http://effectivedemand.blogspot.com/2009…

“One thing that jumps out that Reducing Principal Balance is the lowest line on the chart and effectively zero. If borrowers are expecting significant principal reductions they will be disappointed. It simply won’t happen“

It’s important to note that the source for this article is a “The Department of Corporations” report. not some blogger or other un-reliable or un-documentable source.

Just as for the past few years we have had so many crying that they did not understand the terms of their liar loans….A few years in the future we will be inundated by stories of people who did not understand the terms of their re-worked loan.

Expect

“I had no idea my loan would reset to a much higher payment”

to morph into

“I had no idea any profits from a future sale went to repaying my principal reduction”

Just as mortgage brokers and greedy banks were the villain in part one of this mess, Mortgage modification professionals and greedy banks will be the villains in part two. Anyone thinking bankers are ever gonna start handing out gifts without strings…. is nuts.

[Rt.66]

From “Principal reductions” link:

http://effectivedemand.blogspot.com/2009…

“One thing that jumps out that Reducing Principal Balance is the lowest line on the chart and effectively zero. If borrowers are expecting significant principal reductions they will be disappointed. It simply won’t happen“

It’s important to note that the source for this article is a “The Department of Corporations” report. not some blogger or other un-reliable or un-documentable source.

Just as for the past few years we have had so many crying that they did not understand the terms of their liar loans….A few years in the future we will be inundated by stories of people who did not understand the terms of their re-worked loan.

Expect

“I had no idea my loan would reset to a much higher payment”

to morph into

“I had no idea any profits from a future sale went to repaying my principal reduction”

Just as mortgage brokers and greedy banks were the villain in part one of this mess, Mortgage modification professionals and greedy banks will be the villains in part two. Anyone thinking bankers are ever gonna start handing out gifts without strings…. is nuts.

[Rt.66]

From “Principal reductions” link:

http://effectivedemand.blogspot.com/2009…

“One thing that jumps out that Reducing Principal Balance is the lowest line on the chart and effectively zero. If borrowers are expecting significant principal reductions they will be disappointed. It simply won’t happen“

It’s important to note that the source for this article is a “The Department of Corporations” report. not some blogger or other un-reliable or un-documentable source.

Just as for the past few years we have had so many crying that they did not understand the terms of their liar loans….A few years in the future we will be inundated by stories of people who did not understand the terms of their re-worked loan.

Expect

“I had no idea my loan would reset to a much higher payment”

to morph into

“I had no idea any profits from a future sale went to repaying my principal reduction”

Just as mortgage brokers and greedy banks were the villain in part one of this mess, Mortgage modification professionals and greedy banks will be the villains in part two. Anyone thinking bankers are ever gonna start handing out gifts without strings…. is nuts.

[Rt.66]

From “Principal reductions” link:

http://effectivedemand.blogspot.com/2009…

“One thing that jumps out that Reducing Principal Balance is the lowest line on the chart and effectively zero. If borrowers are expecting significant principal reductions they will be disappointed. It simply won’t happen“

It’s important to note that the source for this article is a “The Department of Corporations” report. not some blogger or other un-reliable or un-documentable source.

Just as for the past few years we have had so many crying that they did not understand the terms of their liar loans….A few years in the future we will be inundated by stories of people who did not understand the terms of their re-worked loan.

Expect

“I had no idea my loan would reset to a much higher payment”

to morph into

“I had no idea any profits from a future sale went to repaying my principal reduction”

Just as mortgage brokers and greedy banks were the villain in part one of this mess, Mortgage modification professionals and greedy banks will be the villains in part two. Anyone thinking bankers are ever gonna start handing out gifts without strings…. is nuts.

[Author]

Posts