Why do lenders prefer a loan modification over a foreclosure?

Today in America foreclosure rates are higher than ever and many people are in desperate need of a modification. Many homeowners are beginning to default on their payments due to financial hardships such as lost jobs or even had there ARM loan adjust to a payment that is just not affordable. The question many people are asking is “why does a bank choose to foreclose rather than perform a loan modification?”

Well as we all know mortgage lenders are currently playing hardball when it comes to modifying your mortgage. But many homeowners don’t know that foreclosure do not benefit the bank much at all and they should modify to save them the trouble. One reason why it is so hard to get your lender to work with you is because they are just overwhelmed with thousands of loan mod requests from all over the united states. Each and every request takes a certain amount of time to review and make sure the calculations are correct. Read more