(2009-02-12) Bank Foreclosure Battle
Banks are fighting attempts to reduce Fore Closure rates. (Credit Crisis 2008) One program, HopeForHomeowners--which Bush officials and banks promised last fall would shield 400,000 families from foreclosure--has so far produced only 25 refinanced loans... Foreclosure proceedings typically cost banks about 50% of a property's value. That's assuming the home can be resold--not a certainty when empty houses multiply in a neighborhood... An analysis White did of a sample of 21,219 largely Sub-Prime mortgages modified in November 2008 found that only 35% of the cases resulted in lower payments. In 18%, payments stayed the same; in the remaining 47%, they rose. The reason for this strange result: Lenders and loan servicers are tacking on missed payments, taxes, and big fees to borrowers' monthly bills.
Edited: | Tweet this!