Lenders more inclined to lower principal? Really?
OK, so I'm hearing on the news, and now seeing in AR blogs, that lenders are "agreeing" to lower principal to help out homeowners.
Which, I don't know....maybe I'm just being cynical but....does anyone else think this is a giant load of poo?
How can this be true? How could lenders be saying that they are more inclined to lower principal when they are one of the main reasons people are losing their homes at such an alarming rate? With 1st and 2nd position lenders trying to wring the most they can out of each deal, a huge chunk of short sales don't even close! That means a huge chunk of sellers in serious financial difficulties are out of their homes and into foreclosure! Meanwhile we're out here trying to hide the baby blankets and schoolbooks and other things left behind by the distressed homeowners in our attempt to get a good "deal" for the next buyer.
Here's a quick scan of recent headlines:
Impending foreclosures cast shadow over housing recovery - Builder; October 5, 2009
Military homebuyers find VA loans a roadblock - SFGate; October 5, 2009
Several mortgage firms getting federal funds have spotty records - KansasCity.com; October 4, 2009
U.S. Q2 Home Foreclosures, Mortgage Delinquencies Up - ABC News Money; September 30, 2009
Goldman Could Reportedly Gain $1B in CIT Bankruptcy - Market News Video; October 5, 2009
Firms are getting billions, yet aren't averting foreclosures - KansasCity.Com; October 4, 2009
Help with mortgages is difficult to come by - CharlotteObserver.com; October 4, 2009
Seems to me that the only principal lenders are willing to lower are the ones spelled this way:
1 a : a comprehensive and fundamental law, doctrine, or assumption b (1) : a rule or code of conduct (2) : habitual devotion to right principles <a man of principle> - Merriam-Webster
Our country is facing one of the worst financial crises since the Great Depression. Which begs the question: what do we need to be talking about here? PRINCIPAL or PRINCIPLE?
"But let justice roll down like waters,
And righteousness like an ever-flowing stream." - Amos 5:24