The Real Reason Banks Won’t Give You a Loan Modification or Short Sale – North Scottsdale Real Estate

This video looks at the stats the Mortgage Bankers Association released for the 4^th Quarter 2009 Mortgage delinquencies and foreclosures. It also answers the question of why banks make it so hard to complete a loan modification or a short sale.

10.44% of all home loans in America were at least one payment past due but not yet in the foreclosure process. 4.58% of all home loans in America were in the foreclosure process. 15.02% of all home loans in America, on a non-seasonally adjusted basis, were in foreclosure or at least one payment past due. This was the highest ever recorded in the MBA delinquency survey. As high as these numbers were at the end of 2009, it still means that roughly 85% of all home loans in America are running smoothly. Lenders are reluctant to make the loan modification or short sale process easy for troubled homeowners because they are afraid that a chunk of the 85% of people making their mortgage payments might stop and try to take advantage.

Here is the report from the Mortgage Bankers Association:

http://www.mbaa.org/NewsandMedia/PressCenter/71891.htm

We want to hear your opinion regarding the bank’s motivation, or lack thereof, to work with troubled homeowners. Please leave a comment below.

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