Quote:
Originally Posted by AtLastHome
For the life of me, I don't understand why banks don't do exactly what you are talking about- do whatever it takes to keep people in their homes. They are losing so much more in the long run with foreclosures that, many (not all) of which could be "re-tooled" and the bank could break even. So many of the people in foreclosure situations do whatever it takes to get back on track with a reduced house payment because they can see the light at the end of the tunnel. Now, they have to be re-employed, if the main reason they are in this situation is due to job loss, but many people do and will continue to take jobs at less pay in order to save their homes. Eventually, they most likely will either go back to the areas of prior employment or re-train to get ahead in an employment areas that show better promise of a future.
My main thoughts on this actually further than the foreclosure and to the cumulative effects of how seriously the great numbers of foreclosures impact so much more in an already weak economy.
If I had the "magic wand" of forecloserdom, it would be my choice to to put something together for mortgagees that in the end, helps stabilize our economy. In the long run, this stabilization is imperative.
Obviously, I am not an economist! However, there is such a domino-effect when one economic hardship triggers another and when such large numbers of people are having these difficulties at the same time.
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actually banks have no choice then to restructure mortgages even for people who didnt qualify or make the deadline for Home Loan Modification programs. In the haze of everything my mortgage company who had just acquired my mortgage mine, after 6 months of screwing up my paperwork and deadlines, defaulted me and tried to get away with it. But luckily for me they record ALL conversations and I kept all documentation. To make a very long story short and threats to sue the fuck out of them they took 20K off my principal and restructured my loan at %5 bringing my payment down $$400.00 a month and this new payment included taxes and insurance! I was one of the lucky ones but that could have gotten away with it had I not fought back. Some people don't fight or understand how to go about it.
In some cases its better to walk away and many did,