Dieppa Law BlogDebt Forgiveness
Surprise! Principal Reductions Key to Fixing Defaults
Unsurprisingly, Deutsche Bank recently reported its findings that re-default rate of modified loans with principal reductions (debt forgiveness) were lower than those with no debt reduction. I have attached the link for the article. I expect the Treasury Department to push more major banks to streamline the process of partial debt forgiveness in order to [...]
Are Banks Forgiving Debt?
Most clients seeking loan modification ask whether or not the bank may forgive any of the debt. For the past two years, it has been very rare that I have seen debt forgiveness on the table. My first experience with debt forgiveness has been with Ocwen, which was the first servicer to offer a share [...]
Debt Forgiveness on The Way?
Miami Herald reported on a potential settlement between federal agencies and the major banks that could lead to debt forgiveness. Here’s the link on the story: http://www.miamiherald.com/2011/02/25/2085171/government-settlement-with-financial.html