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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Pogeu Mahone who wrote (213680)	8/2/2009 9:09:27 AM
From: Pogeu Mahone	Respond to of 306849

To answer my own question: Mortgages: Attack of the killer fees Raw numbers suggest that financial institutions should be modifying more loans for delinquent homebuyers rather than foreclosing. Foreclosure proceedings are expensive and time-consuming, and they only add to the downward pressure on housing values generally. But the problem isn’t just that lenders are pig-headed. As The New York Times reported last week, third-party mortgage servicers earn significant fees when these loans go delinquent. The servicers resemble credit card companies that thrive on late fees: In both cases, companies make the most money when borrowers run up debts, pay bills late, and end up just shy of bankruptcy. As the Obama administration pushes an overhaul of financial regulation, it should also try to reorient the rules of consumer lending so that profits are greatest when borrowers pay their loans on time. =========== CR and everyone, I am wondering if there have been any loans moderated that have not been in default? If the mortgagee is current is that a disqualification to a Loan Modification? Thanks. Z