I wish I could ask them “would you rather restructure the loan for this guy or lose $50K or $200K of your investment by having to sell it at auction?”
I think they know the trough they’ve been dining at pretty well. I saw the SecureAdvantage loan ad from Quicken in the paper this morning. With an 80% LTV, the rate is 6.5% with a minimum payment of 3.5%/year. So a 300K loan is min payment $875. Regular $1896. I wonder how much the rate and minimum payment goes up as you exceed 80% LTV.
Unfortunately, I suspect they know that the buyers can only really afford the minimum, any restructering merely delays the inevitable and potentially increases their loss.
