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

[XBoxBoy]

You wrote: in the end the banks investors are going to be left holding the bag.

Exactly. And this is why we are seeing that although the rates on the 10yr are going down, mortgage rates haven’t gone down. All these workouts, bailouts and other programs in the end will make buying mortgages less attractive. And that’s why in the end they won’t stop the housing decline. (If investors don’t buy mortgages then the price of mortgages goes up. If the price of mortgages goes up, then the housing decline accelerates.)

XBoxBoy

[kewp]

So now the FB’s owe 400k instead of 500k on something worth maybe 200k tops. Doesn’t seem like a great deal from my POV.

This isn’t going to save investment properties purchased during the bubble. 100% of those are going to be defaulted on.

[kewp]

So now the FB’s owe 400k instead of 500k on something worth maybe 200k tops. Doesn’t seem like a great deal from my POV.

This isn’t going to save investment properties purchased during the bubble. 100% of those are going to be defaulted on.

[kewp]

So now the FB’s owe 400k instead of 500k on something worth maybe 200k tops. Doesn’t seem like a great deal from my POV.

This isn’t going to save investment properties purchased during the bubble. 100% of those are going to be defaulted on.

[kewp]

So now the FB’s owe 400k instead of 500k on something worth maybe 200k tops. Doesn’t seem like a great deal from my POV.

This isn’t going to save investment properties purchased during the bubble. 100% of those are going to be defaulted on.

[kewp]

So now the FB’s owe 400k instead of 500k on something worth maybe 200k tops. Doesn’t seem like a great deal from my POV.

This isn’t going to save investment properties purchased during the bubble. 100% of those are going to be defaulted on.

[Deal Hunter]

Update Feb. 4, 2008 — The Mortgage Forgiveness Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualify for this relief.

http://www.irs.gov/newsroom/article/0,,id=174034,00.html

I'm doing the same thing as that guy, but on a volunteer basis (Loan Advocacy).  Hmmmm.  Perhaps I should charge a little something.

 

[Deal Hunter]

Update Feb. 4, 2008 — The Mortgage Forgiveness Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualify for this relief.

http://www.irs.gov/newsroom/article/0,,id=174034,00.html

I'm doing the same thing as that guy, but on a volunteer basis (Loan Advocacy).  Hmmmm.  Perhaps I should charge a little something.

 

[Deal Hunter]

Update Feb. 4, 2008 — The Mortgage Forgiveness Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualify for this relief.

http://www.irs.gov/newsroom/article/0,,id=174034,00.html

I'm doing the same thing as that guy, but on a volunteer basis (Loan Advocacy).  Hmmmm.  Perhaps I should charge a little something.

 

[Deal Hunter]

Update Feb. 4, 2008 — The Mortgage Forgiveness Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualify for this relief.

http://www.irs.gov/newsroom/article/0,,id=174034,00.html

I'm doing the same thing as that guy, but on a volunteer basis (Loan Advocacy).  Hmmmm.  Perhaps I should charge a little something.

 

[Deal Hunter]

Update Feb. 4, 2008 — The Mortgage Forgiveness Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualify for this relief.

http://www.irs.gov/newsroom/article/0,,id=174034,00.html

I'm doing the same thing as that guy, but on a volunteer basis (Loan Advocacy).  Hmmmm.  Perhaps I should charge a little something.

 

[mydogsarelazy]

So I have a question…

What happens if I originally borrowed $500k, and then things fall apart, and the bank says “Hey, you only owe us $400k.”

Does that show up on my credit?

JS

[mydogsarelazy]

So I have a question…

What happens if I originally borrowed $500k, and then things fall apart, and the bank says “Hey, you only owe us $400k.”

Does that show up on my credit?

JS

[mydogsarelazy]

So I have a question…

What happens if I originally borrowed $500k, and then things fall apart, and the bank says “Hey, you only owe us $400k.”

Does that show up on my credit?

JS

[mydogsarelazy]

So I have a question…

What happens if I originally borrowed $500k, and then things fall apart, and the bank says “Hey, you only owe us $400k.”

Does that show up on my credit?

JS

[Author]

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