Around 2011 (maybe 2012ish) there was an upswing in home values because of military restructuring that is now in full effect (i bought my short sale after this up swing).

I went back to the bank and restructured the loan to be amortized over thirty years and was intending to hold for a rental for a couple of years. 

If the mortgage is paid as per the terms till the end of the loan term, the new buyer lender will get the P&I payments from the borrower for the remaining months of loan term from when he/she bought the note.If the borrower defaults on the payments, it is the new buyer lender's job to evaluate various avenues like loan restructure, deed in lieu, refinance, foreclosure and arrive at the best possible action by discussing with the borrower.

This has a lot of banks desperately trying to restructure their books in order to stay healthy, but it doesn't take too many multi-million dollars loans to go south and hurt your bottom line. 215 banks have closed this year alone if that gives you an idea.

In general acquiring and restructuring non performing notes is a BUSINESS, acquiring and servicing performing notes is an INVESTMENT.The difference becomes much clearer once your involved personally.You may want to do an assessment of your goals, available time, and knowledge as to decide if you wish to proceed on your own, to pay for mentoring/guidance, or to invest passively in a note fund.

Debt reduced through mortgage restructuring and mortgage debt that is forgiven in connection with a short sale or foreclosure, generally qualifies for the relief.

Usually best to try and restructure if possible.  

That could be a cash flow play for some investors who understand how to restructure the loan through a modification.

She is looking out for her best interest just as the PMC was restructuring to increase their bottom line. 

You would need to get title involved and the seller ok to sellIn many instances like these if there is equity the seller will just file BK the day before foreclosure to restructure the debt and buy themselves more time