RealtyTrac, an online marketer of homes, reported that approximately 291,000 homes were subjects to foreclosure action in the US last month - up by 30% from last year. Legally, the foreclosure process can begin the first moment a loan payment is missed but it is very unlikely and rarely happens. Current market conditions make it sensible for banks and note holders to try to work out the loan with the homeowner including modifying the terms and even reducing the principal of the loan.
Barbara Desoer, President of Bank of America Mortgage admits that the modifications are generally more attractive and said that based on their model, Bank of America “… is better off as an investor by doing modification that makes the payment affordable than taking the house to foreclosure”.
A property that a bank or an investor takes back must be placed on the market and must compete with other properties that are already either for sale or up for rent. As of today, the Realtor.com website shows a total of 4,079,282 homes available for sale or for lease.
READ YAHOO NEWS ARTICLE
VIEW CNBC INTERVIEW OF DESOER
Barbara Desoer, President of Bank of America Mortgage admits that the modifications are generally more attractive and said that based on their model, Bank of America “… is better off as an investor by doing modification that makes the payment affordable than taking the house to foreclosure”.
A property that a bank or an investor takes back must be placed on the market and must compete with other properties that are already either for sale or up for rent. As of today, the Realtor.com website shows a total of 4,079,282 homes available for sale or for lease.
READ YAHOO NEWS ARTICLE
VIEW CNBC INTERVIEW OF DESOER
