Relevant:
- Arizonans Pay For The Privilege Of Walking Away
- For Mortgage Shoppers, Less Can Be More
- Yes You Can: Apply Again for a Mortgage Refinance After Denial
- (Saving...) Lender Processing Services to Pay $127 Million to Settle Robo-Signing Charges
- Investors Putting Bad Loans Back To Lenders - This Is Only The Beginning.
2009-10-03 — blogspot.com
Once someone decides to stop paying, the loan may be irrecoverable no matter what incentives the lender offers down the road. On the other hand, if the lender offers new terms to anyone who asks, everyone will ask. Either way the lender loses. Moreover, the lender may not easily be able to figure out which option is worse.
The only time the lender is not forked is when someone has a lot of equity in the house issues a threat. Otherwise the lender has to choose between two very unpleasant alternatives, perhaps without even being aware.
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Comments:
catherine at 04:18 2009-10-04 said:
those PEOPLE WITH EQUITY THAT WON'T LEAVE theory is getting old fast............... Say you have $100,000 equity BUT BUT BUT as some have posted on here if you shop smart you might be able to spend 100,000 and get a $3-400,000 home in a very SMART AREA......... THE OLD RULEBOOK HAS BEEN SECURITIZED SO NONE OF THE OLD RULES MATTER Permalinkadd a comment | go to forum thread
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