Sentences with phrase «principal writedown»
That is why we carefully designed the guidelines of the FHA Short Refinance Option to discourage borrowers from purposefully becoming delinquent on their loan, otherwise known as strategically defaulting, solely to receive a principal writedown.
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The principal writedown program at FHA is for use on non-FHA loans.
Principal writedowns force the lender to give up any chance to make up the values when housing prices recover — they are considered too drastic and permanent a solution in most cases.