To ward off potential reset payment shocks or misunderstandings, the largest mortgage originator in the U.S., Countrywide Home Lending, recently took the unprecedented step of proactively contacting option ARM customers who routinely have been making only the minimum payments. A copy of the prototype for all the letters was provided to Realty Times by Countrywide.
That makes perfect sense from the lender’s point of view. If they shock enough into selling now then the lender has a better chance of recouping most, if not all, their investment.
Better a possible short sale now than a foreclosure later.
Speaking of WTF, all you “6+ figure” software architects would do well to visit The Daily WTF for reminders of the fleeting nature of common sense. I subscribe to the RSS feed and encourage my pet programmers to do the same.
I thought the thread was going to go like this when I opened it:
Do you remember that loan we gave you, Well……..
We don’t want it back, PLEASE start paying ur payment!
Calculated Risk ran this story a few days ago, and had a copy of the letter too. Rich has an RSS feed to Calculated Risk in the Bubble Blogger section. Countrywide letter
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