[877YouKeep]

A lenders approach to a borrower in default should be to bring the loan current in order to do this they must:

1. Determine the reason for delinquency (Reason for default)
2. Exhaust all options to workout and restore the mortgage
3. Do everything possible to keep the loan out of foreclosure

Foreclosure is the legal process of selling the property that is used for collateral for a loan to pay the borrowers debt.

The real impact of foreclosure
There are many valuable resources involved in the foreclosure process. There are extensive costs and time associated with a foreclosure. The lender, investor, insurers, and homeowner assume great financial loss for almost every loan referred to foreclosure.
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The Lender -
1. Loss of interest income
2. the cost associated with marketing and selling the property through a realtor
3. All of the court cost and fees

The Investor -
1. Loss of interest income
2. The inability to sell paper in the secondary market without substantial loss

The Insurer -
1. Loss of portfolio stability
2. Loss of premium payments
3. Cost of foreclosure claims

The Homeowner
1. Loss of property
2. Loss of initial investment
3. Negative Credit Reporting
4. Attorney fees
5. Late charges incurrred for every late payment
6. Possible deficiency judgment
7. Income tax implications (1099 C)
8. Health issues from stress
9. Family issues (instability)