[quote=spdrun]I mostly agree, but I do think that banks/servicers should show some compassion when exigent circumstances arise.[/quote]
I completely disagree. A borrower signs a note that explains exactly what they are agreeing to. If they fail to meet their end of the bargain then why should there be compassion? The bank, investor or lender has provided their capital for a mortgage, auto, credit card or student loan and they get to dictate the terms of the agreement. They underwrite the credit and if the borrower fails to perform they seize the collateral and send you to collections. A borrower should be prepared for exigent circumstances, they should have a cash reserve that can get them through any hard times, i.e. loss of job, etc.
I’m tired of the whining and complaining of the “predatory” lenders, especially in today’s environment how everybody is underwritten. I didn’t buy my first home until I could afford one. I put 20% down and had another 20% sitting around in cash and equivalents. I had no auto loans, student loans, or credit card debt. I have a HELOC that is not drawn upon. People need to be fiscally responsible and not ask to borrow money unless they are willing to pay for it. If you are a bad credit, be ready for high rates and high origination fees as the lender needs to ensure to cover for your sorry ass when you default.
If you want somebody to help you out for making a bad decision and get through a tough time, go to your family and friends. There is no need for a lender to provide compassion, they are in the business of creating margin, not losses. A servicer is engaged by the lender to perform their role, collect payments and produce a statement, not to listen to sob stories.
