Loan Modification - Free Foreclosure Help - Help Stop Foreclosure » Help Stop Foreclosure - Loss Mitigation Help » Mortgage Forclosure » Foreclosure Consequences

Mortgage Forclosure The forum for everything related to Mortgage Forclosure

Short Sale    Loan Modification    Loss Mitigation Training    Short Sales Training
Reply
  #1 (permalink)  
Old 08-30-2007, 07:00 AM
Senior Member
 
Join Date: Jul 2007
Posts: 692
Default Foreclosure Consequences

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.
To To view links in this forum your post count must be 10 or greater. Your post count is 0 momentarily. you must realize the impact
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)
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On




All times are GMT -4. The time now is 05:30 PM.
Powered by vBulletin® Version 3.6.7
Copyright ©2000 - 2012, Jelsoft Enterprises Ltd. Free Foreclosure Help