Quote:
Originally Posted by cdelena
True. I have spoken with a number of remediation people and it seems the two requirements for help is being 90 days off of current and some kind of employment.
Too bad too... there are people that are smart enough to see a default coming, can put together a plan to avoid it with help from lenders, but simply get no consideration.
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Oh, I am not disputing that reasoning at all. After all, if you see you are about to be hit with a freight train two miles out, you would want to see if you could avert the collision before you are 20 feet out. It makes sense. Unfortunately, there exists a personnel shortage to deal with those loans that are being turned over to the attorneys for foreclosure proceedings. Untrained temps are answering the telephones. I have no doubt they have a minimum checklist before passing go to the next level.
Why would anyone spend $1000s (in some cases 100's of 1000's) modifying a loan for someone that is not employed and has a very high chance of being back for foreclosure? How do you convince them you won't be back, and next time for delinquent payments? Why should the banks go through the expense twice? Included in their criteria is an application package. If the homeowner cannot qualify for the new mortgage, why modify? What purpose does it serve?
I am not denying you have valid concerns. I just can't get the perspective of the bank to agree with the direction you propose, a maybe solution. By the way, as a stockholder, I would be livid if a bank I was invested in made costly negotiations without a firmer resolution.