Foreclosures and Lenders

By
Real Estate Agent

I was just sitting here thinking the other night and I got stumped. As a Lender, the cost of foreclosing on a property is so costly why dont the Lenders contract the homes with Property Management companies. The Lender would be able to hold out the market until the market value caught up with the loan amount. This would also allow the Lender to receive the income in the mean time.

Ive seen some Lender take $50K less than what the mortgage balance is. Im not sure if its like this in your market but in the amount of loss from the short fall in the rental income vs what the mortgage amount is, would be alot less than $50K.

With affordable housing such a problem across the nation, this would provide for more housing to everyone.

 

Just a thought.

 

Comments (2)

Melody Botting
Broker Associate PenFed Realty - San Antonio, TX
You Deserve The Best
Realtors have been fighting to keep banks out of our side of the business for many years.  There are countless reasons why.  This is not a good idea.
Apr 13, 2008 05:52 PM
Anonymous
d

You crook, hope you spend all your adult life in jail.

Jul 26, 2011 01:44 PM
#2