Re: Help!!! loan modification docs

Posted by NJD on August 23, 2008 at 06:47:48:

In Reply to: Re: Help!!! loan modification docs posted by Paul on August 23, 2008 at 05:54:45:

"However with new legislation, for those in foreclosure (as he was) people can rewrite the loan at 85% of current market value"

That isn't totally true.

There is nothing in the legislation which compels the lender to reduce the loan amount. It is strictly voluntary on the lender's part.

Perhaps, if Fannie and Freddie are nationalized, they can use the allotted $300 billion to purchase portfolios of subprime or AltA and then, as owners of the loans, make the reductions in principal.

But as of today, the legislation is simply smoke and mirrors.

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