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Can't make your mortgage payment--forgetaboutit

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Elliott

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Apr 23, 2002
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Certified General Appraiser
State
Oregon
Todays WSJ,


Mortgage companies typically begin sending foreclosure notices when a borrower is more than 90 days behind on payments and can't come up with a plan to resolve the problem. But in many cases, the companies have concluded that they are better off not foreclosing on borrowers who can't make payments on their home-equity loans and other types of second mortgages.

"More often now than ever before we are writing off the loan" when borrowers fall behind on home-equity payments, says Bob Caruso, Bank of America Corp.'s national servicing executive. "The customer still owes the money, but it is no longer an asset on our books." That doesn't let the borrower off the hook: The lender keeps the lien in place, however, in the hopes that it will receive some money when the property is sold.
 

Randolph Kinney

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Apr 7, 2005
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Retired Appraiser
State
North Carolina
I believe that is where analyst are hoping for the future value to come in when a portion of those total write off have value. Makes a good pop favorable to the bottom line, when it happens. How long will that be? :shrug:
 

Terrel L. Shields

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May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
where analyst are hoping for the future value to come in when a portion of those total write off have value
And why inflation won't bother them. They know its the only thing that will save their bacon. Inflation will drop loan amount below home prices.
 
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