Do you think the lenders will offer restructured lending products, i.e. they would rather extend the teaser rate or add a balloon payment than lost $100K – $300K in a foreclosure or short sale. I know they are limited by investors and the higher interest rates they could get, but if you balance the lower interest rate against a $200K loss, it seems like an easy decision.
I’m just surprised that lenders are not restructuring loans for anyone who is 1-2 months late, to avert a much worse loss at foreclosure. A lender I spoke with said investors will never allow a restructuring, because they want the current higher rate.
