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Principle Reduction on Mortgage

Home Prices Decline While Mortgage Debt Remains High: The Case For Principle Reduction.

by Nathan Fransen Esq.

Home prices have dropped, and dropped big. According to The S&P/Case-Shiller National Home Price index, home prices are almost 20% lower than one year ago. This represents the largest price decline ever recorded by the Case-Shiller Index. According to the Index, prices have basically been in a freefall since reaching their peak in early 2006. [...]

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Why Loan Modifications Often Don’t Work

by Moe Bedard

Despite modifications, many homeowners are still underwater.

Borrowers who owe more on their homes than they are worth have little incentive to stay there, even if their payments are lower. “I’m a big advocate for principal reduction because when people are underwater by hundreds of thousands of dollars, they walk away,” says Moe Bedard, the founder of LoanSafe Solutions, a Corona, Calif.-based company that works with attorneys specializing in loan modifications.

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Polishing Mortgage Turds: The FDIC Loan Modification Plan Will Not Work Without Massive Principle Reductions

by Moe Bedard

Polishing a turd definition: The act of trying to make something hopelessly weak and unattractive appear strong and appealing. An impossible process that usually results in a larger, uglier turd.
Example: She tried to look more attractive by getting plastic surgery, but let’s face it, you can’t polish a turd.

“Bottom line America, thousands of homeowners are [...]

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Let’s Use Fannie to Clean Up the Mess It Made

by Moe Bedard

Earlier this week, James Lockhart, the director of the Federal Housing Finance Agency and the government conservator of Fannie Mae and Freddie Mac, said that the two companies need to begin writing

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Struggling borrowers face brick wall on loan workouts

by Moe Bedard

Reductions in principal, on mortgages that now dwarf the home’s value, are nearly unheard of, even among the most willing firms. Just 2 percent of modifications — or less than 1 percent of all loan “workouts” — resulted in a reduction in principal, according to a monthly state survey of a dozen California lenders and [...]

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Loan Modification Myths and Facts

by Moe Bedard

There are a lot of myths surrounding lenders and servicers as to what they will and will not do during the loan modification process. 
The confusion and inaccurate data that is propagating the internet and the news is based on ill-informed bloggers or journalists who really have no idea what is going on in the loss mitigation arena. This [...]

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