patrick.net

http://ochousingnews.com/blog/final-resolution-loan-modifications-will-push-people-homes/

As prices near the peak, lenders allow loan modification payments to reset forcing people out who can’t afford the payments.

Lenders give loan modifications to desperate borrowers ostensibly to keep them in their homes, but more importantly for lenders, loan modifications keep properties off the MLS and force buyers to compete for diminished inventory driving prices higher; but once prices near the peak, will lenders be so accommodating to struggling borrowers?

Loan modifications are not an entitlement, and banks don’t want to make them one, but that’s not how borrowers see it. Borrowers consider loan modifications a birthright, and they believe lenders will always accommodate their sob stories and allow them to remain in houses they can’t truly afford.

Source: http://ochousingnews.com/blog/final-resolution-loan-modifications-will-push-people-homes/#ixzz36yj8qvLJ

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