An article on loan modifications that shows how crazy things are!
I promise I was trying to act like I was having a balanced life. On vacation and not spending too much time answering the phone or checking e-mails. But as you know real estate sometimes just follows you around and won't let go. That happened in the local City Market Food Store in Breckenridge, CO. What a great place to go to escape the 110 degree Phoenix heat!
What caught my attention was the article in The New York Times labeled, "Profit From Fees May Trump Plan to Modify Mortgages".
In spite of government incentives to banks or servicers that modify loans, the reality is that the path is much more lucrative to follow another direction. The New York Times article from July 30, 2009 states,
"Even when borrowers stop paying, mortgage companies that service the loans collect fees out of the proceeds when homes are ultimately sold in foreclosure. So the longer borrowers remain delinquent, the greater the opportunities for these mortgage companies to extract revenue — fees for insurance, appraisals, title searches and legal services."
Here's the link for the rest of the story. Very informative. Have you seen this in action?
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