Category: Principal

The principal of the thing: Part 3, protecting our interest

26 October, 2011 (10:02) | Debt, Foreclosure, Hard debt, Hard equity, Homeownership, Housing, Interest, Negotiation, Principal, Subprime, US News, Workouts | 2 comments

By:David A. Smith   [Concluded from yesterday's Part 2 and the previous Part 1.]   So far in this lengthy post we’ve dismantled two pillars of the argument, advanced by a recent New York Timesarticle, that Fannie Mae and Freddie Mac are acting arbitrarily in refusing to allow waivers of principal on home loans they […]

The principal of the thing: Part 2, keeping their interest

25 October, 2011 (10:49) | Debt, Foreclosure, Hard debt, Hard equity, Homeownership, Housing, Interest, Negotiation, Principal, Subprime, US News, Workouts |

By:David A. Smith   [Continued from yesterday's Part 1.]   Yesterday we showed that, despite what a recent New York Times article would have you believe, refusal to agree on unilateral cuts of mortgage principal owed by homeowners whose houses may be worth less than those loans isn’t stubbornness by a single individual but is rather […]

The principal of the thing: Part 1, getting their interest

24 October, 2011 (10:59) | Debt, Foreclosure, Hard debt, Hard equity, Homeownership, Housing, Interest, Negotiation, Principal, Subprime, US News, Workouts |

By:David A. Smith   Precedent is an asymmetric concept; if I as a borrower want to misbehave, anything I do has no binding effect on any other misbehaving borrower, but if I as a lender adopt a position with one borrower, that can certainly bind me in dealing with other borrowers.     Too many […]