Loan modification?
░♥░ asked:
Why does it make sence for lenders to reduce your rate, and for you to keep the house? Why don’t they just take it away from you? Please explain in detail…
What is Loan Modification
Why does it make sence for lenders to reduce your rate, and for you to keep the house? Why don’t they just take it away from you? Please explain in detail…
What is Loan Modification
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It makes sense because the majority of the loans are for more than the house is currently worth. If you walk away from the house then the bank is stuck with the property which no one is paying anything on and it is now worth less than before. So usually they would be taking a huge hit. So they would rather try and make it more affordable to keep you in the house so they are still getting paid and making mony off of you but just not as much before. Sometimes it wil make sense for them to take it away but most of the time it will not just because of the reson I outlined above.