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Why can't the loan modifications from banks include a reduction in principle. I thought this was implemented, but have not heard of it taking place. As long as we cap it at no less than 25% of the original home value. Does it not make more sense for a bank to make this arrangment with the existing home owner instead of short saling it or letting it go into foreclosure. The bank will surely see less than 25% of the ...more »
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