Banks adjusting delinquent loans?

[kev374]

Why would a lender fix the rate this far below market for longer than a few more years?

well, not sure but the argument by the bulls is that it costs lenders a lot more to foreclose and it’s cheaper to adjust the rate.

[patientrenter]

Kev, if the borrower can’t afford the current monthly payment, then the lender can lower it for a few more years to avoid a foreclosure during that period. Then the lender re-evaluates the market and the borrower’s ability to pay at the end of that extension and repeats the extension only if necessary. To lower the rate more than a few years out at any one time seems unnecessary and very expensive to me.

Patient renter in OC

[patientrenter]

Kev, if the borrower can’t afford the current monthly payment, then the lender can lower it for a few more years to avoid a foreclosure during that period. Then the lender re-evaluates the market and the borrower’s ability to pay at the end of that extension and repeats the extension only if necessary. To lower the rate more than a few years out at any one time seems unnecessary and very expensive to me.

Patient renter in OC

[patientrenter]

Kev, if the borrower can’t afford the current monthly payment, then the lender can lower it for a few more years to avoid a foreclosure during that period. Then the lender re-evaluates the market and the borrower’s ability to pay at the end of that extension and repeats the extension only if necessary. To lower the rate more than a few years out at any one time seems unnecessary and very expensive to me.

Patient renter in OC

[patientrenter]

Kev, if the borrower can’t afford the current monthly payment, then the lender can lower it for a few more years to avoid a foreclosure during that period. Then the lender re-evaluates the market and the borrower’s ability to pay at the end of that extension and repeats the extension only if necessary. To lower the rate more than a few years out at any one time seems unnecessary and very expensive to me.

Patient renter in OC

[patientrenter]

Kev, if the borrower can’t afford the current monthly payment, then the lender can lower it for a few more years to avoid a foreclosure during that period. Then the lender re-evaluates the market and the borrower’s ability to pay at the end of that extension and repeats the extension only if necessary. To lower the rate more than a few years out at any one time seems unnecessary and very expensive to me.

Patient renter in OC

[hpi]

I am wondering what exactly percent of ARMers that have trouble if banks agree to give them a “reasonable” rate for reset (for example 6-6.5% of 30 year fix). From the point view of banks, this reduces their profit but greatly reduce the potential loss either. I don’t see why lender won’t do it if the foreclosure is forthcoming and letting the bank immediate write down $100k of loss at this market.

[hpi]

I am wondering what exactly percent of ARMers that have trouble if banks agree to give them a “reasonable” rate for reset (for example 6-6.5% of 30 year fix). From the point view of banks, this reduces their profit but greatly reduce the potential loss either. I don’t see why lender won’t do it if the foreclosure is forthcoming and letting the bank immediate write down $100k of loss at this market.

[hpi]

I am wondering what exactly percent of ARMers that have trouble if banks agree to give them a “reasonable” rate for reset (for example 6-6.5% of 30 year fix). From the point view of banks, this reduces their profit but greatly reduce the potential loss either. I don’t see why lender won’t do it if the foreclosure is forthcoming and letting the bank immediate write down $100k of loss at this market.

[hpi]

I am wondering what exactly percent of ARMers that have trouble if banks agree to give them a “reasonable” rate for reset (for example 6-6.5% of 30 year fix). From the point view of banks, this reduces their profit but greatly reduce the potential loss either. I don’t see why lender won’t do it if the foreclosure is forthcoming and letting the bank immediate write down $100k of loss at this market.

[hpi]

I am wondering what exactly percent of ARMers that have trouble if banks agree to give them a “reasonable” rate for reset (for example 6-6.5% of 30 year fix). From the point view of banks, this reduces their profit but greatly reduce the potential loss either. I don’t see why lender won’t do it if the foreclosure is forthcoming and letting the bank immediate write down $100k of loss at this market.

[SD Realtor]

I agree with patientrenter, it would make sense that the lender is just trying to buy some time.

SD Realtor

[SD Realtor]

I agree with patientrenter, it would make sense that the lender is just trying to buy some time.

SD Realtor

[SD Realtor]

I agree with patientrenter, it would make sense that the lender is just trying to buy some time.

SD Realtor

[SD Realtor]

I agree with patientrenter, it would make sense that the lender is just trying to buy some time.

SD Realtor

[Author]

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