the visible hand

it is the theory which decides what can be observed – einstein

Subprime Renegotiation

Posted by ecoshift on December 23, 2007

It always comes down to emotion….

A legal negotiation between a mortgage bank and a lawyer representing a client who cannot meet his adjustable rate mortgage payments and is facing foreclosure on his home. The victorious lawyer wins by noting that cases are won by appealing to a jury’s emotion, but civil cases like this, in contrast to criminal cases, are decided by a judge, not a jury, who is expected be much less swayed by emotional appeals.

And with falling asset prices, the mortgage debtor would probably be better off to walk away from his debt obligations and purchase a home in the future after his credit has been restored and home prices have fallen.

–  FrothySnowman


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: