WE ALL KNOW ABOUT the foreclosure crisis, in which millions of americans lost their homes, and many more will in the near future, being as how the crisis is ongoing.
it almost seems as if a foreclosure should never happen; that every situation ought to be resolvable through refinancing. i met a person who was paying interest only on her loan, and had been doing so for several years. as predatory as that sounds, if a bank can do that, surely it can do whatever it takes to avoid any and all foreclosures.
if lenders were willing to refinance all distressed mortgage holders, then it might become a tad too popular to get into mortgage payment trouble...but surely there could be found a solution for that, too.
who deserves a refinance? people who have paid high interest, relative to the currnet market, but who have steadfastly stayed ahead of their payment schedule? those who, through no fault of their own, have become financially distressed through business failure or illness?
maybe a refinance favorable to the borrower should be available to such people, and refinacing favorable to the lender should be available to people whose financial woes are self inflicted, and plain stupid.
it just seems that forclosures ought to be a lot more rare than they are, even considering the bad economy. are lenders too willing to make unwise loans, and too unwilling to adjust them later, at the loss of profit? how much profit, if any, are lenders, as a rule, willing to part with, in the interest of keeping a good but temporarily and justifiably distressed mortgage holder afloat?
if lenders and borrowers were more willing to work together, foreclosures could become a rarity. one senses that lenders are more to blame than borrowers..
Bb
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