Bellevue WA – In my opinion, the decision making process most lenders use to approve or deny a loan modification is flawed. It appears that the lenders have one thing in mind when you stop paying.
Click here to discover how other sellers successfully did a short sale and avoided foreclosure.
They want to foreclose as quickly as possible. It appears that they don’t want homeowners to stay in the home. A foreclosure is much simpler and easier. So they just look at it as the main solution. If a homeowner can’t afford the payments, then the lender should have reducing losses as their main goal. If that was their goal, then they would approve loan modifications that net them more money than a foreclosure would net them. Instead, the loan mods are approved only when everything is perfect. As a result, you have people that would find a way to make the payment being foreclosed upon.
As an example, let’s say a homeowner could afford a mortgage payment that equals a $200,000 mortgage. But, the borrower doesn’t completely match the lender’s guidelines. So the lender forecloses on the house. It sells for $140,000. That is $60,000 lower than the $200,000 they would have netted on the loan modification. Ouch! That is how you can hold your lender accountable. If they reject your loan modification and foreclose, then you should track what your home sells for after foreclosure. But, how does this help you during loan modification negotiations? Click here to continue reading.
