Do Banks Prefer Foreclosure?
Apparently they do and I don’t just say that because of the article below. This has been very apparent by their actions throughout this housing crisis. I understand why the article states this but banks lack common sense and I could go on for days as to why I say this. The part that they leave out is that 60% or so of the modified loans end up in default again because the modified payment is higher. See, that makes no sense.
“Policymakers often say it’s a good deal for lenders to cut borrowers a break on mortgage payments to keep them in their homes. But, according to researchers and industry experts, foreclosing can be more profitable.”