Re:Mortgage Rates Could Tank Home Prices by 20%, Fed Study F...
by bombcar on Wednesday November 16, 2022 @11:28AM
(#33625796)
It used to be, in rare cases, when banks did not resell mortgages forward, that you could renegotiate the principle amount in lieu of foreclosure.
Basically, everyone would recognize that the bank could take a $50k wash if they foreclosed, so for the right deal they'd take a smaller wash, and you'd have a lower principal amount and a longer payment term or similar.
It still happens with big commercial loans at times.
Basically, everyone would recognize that the bank could take a $50k wash if they foreclosed, so for the right deal they'd take a smaller wash, and you'd have a lower principal amount and a longer payment term or similar.
It still happens with big commercial loans at times.