1st / 2nd principal writedowns - question for Moe

[Mike]

Hi Moe,In your FAQ, you wrote - ---Quote---Myth: Lenders and servicers are offering principle reductions on borrowers whose mortgage balances are in the red and owe more than the home is worth.Fact: Yes, but this is very rare. This is usually done when a borrower has a 1st and 2nd mortgage and the 2nd is negotiated down and settled for 10-20 cents on the dollar. The first is less likely to offer a reduction in principle unless they are facing litigation and or there are legal violations on the borrower’s loan.---End Quote---I was wondering if you could provide any specific details on the circumstances of when this has happened? I haven't see much of this in the forums.Take care,ccsint