Quote:
Originally Posted by merrylander
The problem is that the bankers absolutely refuse to lower the mortgages to the actual value of the house. So they foreclose (with all the attendant expenses) and end up selling the house at a big loss. Do they expect to make a profit on volume?  |
Although I had a standard 15 year mortgage with 20% down when I became ill the bank would do nothing. Nothing.
They foreclosed rather than take a reduced payment. Now, two years later the house is still empty (not even on the market) in disrepair which it was not, they have to maintain the outside and pay the tax and incurred all the foreclosure costs which I understand is tens of thousands of dollars here in NY.
All in all they are out at least $100,000-$150,000 instead of breaking even for 5 years or so.
and BTW all that crap Obie passed to compel the banks to work with the home owner only increased the costs to the banks without compelling them to make any decisions that helped the homeowner.
For example, they were required to have a sit down with the home owner at the home owners request but did not have to negotiate in good faith. So they would send minimum wage representatives to the meeting with no power to negotiate. As long as someone showed up, they were in compliance and the foreclosure could proceed.