Lenders in California are placing their faith in the success of loan modifications. Of course, to them success can mean something different than what it means to a loanowner. Success to a lender can be defined as obtaining a few more payments prior to a short sale or foreclosure. With prices rising, lenders benefit two ways from loan modifications. First, they get cashflow from non-performing loans. They know this is likely temporary as about 50% of loan modifications fail each year, but some cashflow is better than none. Plus, since prices are rising, when they do finally approve a short...
Banks go "all in" betting on success of loan modifications
By golfplan18 Follow Wed, 19 Dec 2012, 7:08am 307 views 2 comments
In Irvine CA 92620
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50% failing mean 50% don't fail. I'm sure lenders are much happier that their potential foreclosures are cut in half as opposed to collecting a couple more months worth of payments.
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Oil Can's website
Watch for the coming principal reduction lottery.