Why lenders are unwilling to change mortgage loan?
I have friends who bought a house in 2006 for $ 275,000. They have received funding from conventional 10% down and made their mortgage payments. The subsequent real-estate crisis of zero-pay-what-you want-ready destroyed the value of their property. Your lender has refused even to discuss loan modification. They departed their credit would appear to recover more quickly than the housing market. Your old house is now on the market for $ 95,000. They would have been happy with a mortgage to DOUBLE that assessment without interruption in revenue or costs of foreclosure the lender. It makes no sense to me. Everyone at the entrance? There is more to it than personal responsibility. Banks and mortgage brokers peddled unwarranted loans to buyers naive. Other buyers have the opportunity to purchase property they knew they could not afford. Angelo Mozillo Countrywide CEO made millions building houses of cards and real estate went when he collapsed. This does not change the fundamental Frage.Jeffrey you for your comment. When my friends have contacted their lender told them they needed to miss three payments before the lender (Countrywide) would talk to them. Your response: “Okay, if what you want.” It made no difference. They missed six payments. Still no difference. She consulted a real estate lawyer and walked away. They now rent a nice house for $ 900 per month less than your old mortgage payment and invest the difference. In seven years, when their credit, they are recovered in the vicinity of $ 90K-$ 100K, must return to the market.