tag:blogger.com,1999:blog-8236405782975490260.post7791911463683334076..comments2024-03-20T22:55:32.772-07:00Comments on Valley Economy: New FHFA Analysis is Reported to Show Principal Reduction Saves Taxpayers MoneyJeffhttp://www.blogger.com/profile/10344751623916759400noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-8236405782975490260.post-91729302878460520462012-08-28T07:42:46.014-07:002012-08-28T07:42:46.014-07:00You are right, this would be a productive directio...You are right, this would be a productive direction. <br /><br />Some posts from years ago on this blog endorse a similar concept, shared appreciation mortgages, that many economists were advocating from the beginning of the crisis. Whomever financed the principal write-down, lender or taxpayers, would split any future appreciation above the new loan balance if home were sold in the future. Jeffhttps://www.blogger.com/profile/10344751623916759400noreply@blogger.comtag:blogger.com,1999:blog-8236405782975490260.post-35009816634488979372012-08-28T06:41:14.589-07:002012-08-28T06:41:14.589-07:00I don't know why principal reduction should no...I don't know why principal reduction should not be coupled with a debt-equity swap. If the lender is going to take a haircut on the principal, he should get an undivided interest in the house. In fifteen years, if things work out, both parties would have been treated fairly.Mr. Kurtznoreply@blogger.com