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

[Deal Hunter]

You’re right, SD. It’s another form of fighting the price correction that really needs to happen. It may be painful, but the markets really need to be set free. Manipulation of the markets by the Fed thru monetary policy and the government thru fiscal policy needs to just STOP.

I know that what I am about to say is going to trigger vile retorts, but the real enemy is inflation. Helicopter Ben needs to be handcuffed to his bathroom tub to prevent him from further cutting the prime lending rate.

[SD Realtor]

Well Deal Hunter, if you get vile retorts they will not be from me. I could not agree more that inflation is the enemy. If we saw a radical tightening of the money supply it would be bad medicine indeed but most likely yield the quickest recovery.

SD Realtor

[SD Realtor]

Well Deal Hunter, if you get vile retorts they will not be from me. I could not agree more that inflation is the enemy. If we saw a radical tightening of the money supply it would be bad medicine indeed but most likely yield the quickest recovery.

SD Realtor

[SD Realtor]

Well Deal Hunter, if you get vile retorts they will not be from me. I could not agree more that inflation is the enemy. If we saw a radical tightening of the money supply it would be bad medicine indeed but most likely yield the quickest recovery.

SD Realtor

[SD Realtor]

Well Deal Hunter, if you get vile retorts they will not be from me. I could not agree more that inflation is the enemy. If we saw a radical tightening of the money supply it would be bad medicine indeed but most likely yield the quickest recovery.

SD Realtor

[SD Realtor]

Well Deal Hunter, if you get vile retorts they will not be from me. I could not agree more that inflation is the enemy. If we saw a radical tightening of the money supply it would be bad medicine indeed but most likely yield the quickest recovery.

SD Realtor

[barnaby33]

On the whole re-write issue, wouldn’t the old contract or mortgage need to be set-aside and a new mortgage recorded? I don’t know the mechanics of the process intimately but it seems like thats more of a story than a reality. The bank just lops off money you owe them? It may be practical, but it seems like there would be a huge paper trail. A paper trail that would have county recorded tie-ins.

As a second issue I don’t think it matters that much. All the bank is doing is recognizing market value such as it is today and adjusting what you owe accordingly. They wouldn’t be doing this is they thought that by selling the property after a foreclosure they would get more or even the same on the open market. It sounds distasteful, because it rewards the risky behavior we on this site abhor, but its still a form of market price discovery.

Is there any way to get more information on this practice?

Josh

[barnaby33]

On the whole re-write issue, wouldn’t the old contract or mortgage need to be set-aside and a new mortgage recorded? I don’t know the mechanics of the process intimately but it seems like thats more of a story than a reality. The bank just lops off money you owe them? It may be practical, but it seems like there would be a huge paper trail. A paper trail that would have county recorded tie-ins.

As a second issue I don’t think it matters that much. All the bank is doing is recognizing market value such as it is today and adjusting what you owe accordingly. They wouldn’t be doing this is they thought that by selling the property after a foreclosure they would get more or even the same on the open market. It sounds distasteful, because it rewards the risky behavior we on this site abhor, but its still a form of market price discovery.

Is there any way to get more information on this practice?

Josh

[barnaby33]

On the whole re-write issue, wouldn’t the old contract or mortgage need to be set-aside and a new mortgage recorded? I don’t know the mechanics of the process intimately but it seems like thats more of a story than a reality. The bank just lops off money you owe them? It may be practical, but it seems like there would be a huge paper trail. A paper trail that would have county recorded tie-ins.

As a second issue I don’t think it matters that much. All the bank is doing is recognizing market value such as it is today and adjusting what you owe accordingly. They wouldn’t be doing this is they thought that by selling the property after a foreclosure they would get more or even the same on the open market. It sounds distasteful, because it rewards the risky behavior we on this site abhor, but its still a form of market price discovery.

Is there any way to get more information on this practice?

Josh

[barnaby33]

On the whole re-write issue, wouldn’t the old contract or mortgage need to be set-aside and a new mortgage recorded? I don’t know the mechanics of the process intimately but it seems like thats more of a story than a reality. The bank just lops off money you owe them? It may be practical, but it seems like there would be a huge paper trail. A paper trail that would have county recorded tie-ins.

As a second issue I don’t think it matters that much. All the bank is doing is recognizing market value such as it is today and adjusting what you owe accordingly. They wouldn’t be doing this is they thought that by selling the property after a foreclosure they would get more or even the same on the open market. It sounds distasteful, because it rewards the risky behavior we on this site abhor, but its still a form of market price discovery.

Is there any way to get more information on this practice?

Josh

[barnaby33]

On the whole re-write issue, wouldn’t the old contract or mortgage need to be set-aside and a new mortgage recorded? I don’t know the mechanics of the process intimately but it seems like thats more of a story than a reality. The bank just lops off money you owe them? It may be practical, but it seems like there would be a huge paper trail. A paper trail that would have county recorded tie-ins.

As a second issue I don’t think it matters that much. All the bank is doing is recognizing market value such as it is today and adjusting what you owe accordingly. They wouldn’t be doing this is they thought that by selling the property after a foreclosure they would get more or even the same on the open market. It sounds distasteful, because it rewards the risky behavior we on this site abhor, but its still a form of market price discovery.

Is there any way to get more information on this practice?

Josh

[Anonymous]

What I don’t like about this is the idea that it would only be for “distressed” owners. Anyone who bought at the peak is going to be sitting in a house that is worth less than they bought it for, but if you bought something you could afford, too bad. If you bought something you could not afford, you get bailed out. Either bail out everyone or no one.

[Anonymous]

What I don’t like about this is the idea that it would only be for “distressed” owners. Anyone who bought at the peak is going to be sitting in a house that is worth less than they bought it for, but if you bought something you could afford, too bad. If you bought something you could not afford, you get bailed out. Either bail out everyone or no one.

[Anonymous]

What I don’t like about this is the idea that it would only be for “distressed” owners. Anyone who bought at the peak is going to be sitting in a house that is worth less than they bought it for, but if you bought something you could afford, too bad. If you bought something you could not afford, you get bailed out. Either bail out everyone or no one.

[Anonymous]

What I don’t like about this is the idea that it would only be for “distressed” owners. Anyone who bought at the peak is going to be sitting in a house that is worth less than they bought it for, but if you bought something you could afford, too bad. If you bought something you could not afford, you get bailed out. Either bail out everyone or no one.

[Author]

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