forgot password?   register

#housing #investing #politics more»
735,439 comments in 75,662 posts by 10,906 registered users, 10 online now: epitaph, errc, FP, HEY YOU, indc, iwog, justme, PeopleUnited, SD1, YesYNot

new post

Banks go "all in" betting on success of loan modifications

By golfplan18   2012 Dec 18, 11:08pm   600 views   2 comments   watch (0)   quote

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...


Comments 1-2 of 2     Last »

1   tatupu70     2012 Dec 18, 11:25pm  ↑ like   ↓ dislike   quote    

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.

2   Oil Can     2012 Dec 19, 3:55am  ↑ like   ↓ dislike   quote    

Watch for the coming principal reduction lottery.

Comments 1-2 of 2     Last »

users   about   suggestions   contact  
topics   random post   best comments   comment jail  
patrick's 40 proposals  
10 reasons it's a terrible time to buy  
8 groups who lie about the housing market  
37 bogus arguments about housing  
get a free bumper sticker:

top   bottom   home