Did you see this WSJ article? It says that banks are slower to foreclose than Fannie Mae and Freddie Mac.
So much for banks being the bad guys eager to swallow you up.
Banks take a $40,000 hit on each foreclosure. They don’t want to foreclose. They’d rather work with you than foreclose. And even if you haven’t paid your mortgage for months, they may let you linger in your home.
The WSJ says: Fannie, Freddie and federal agencies require mortgage servicers to adhere to strict timelines that govern the modification and foreclosure processes, but banks don’t face similar requirements for the loans on held their books.
That means more borrowers whose loans are held by banks could linger in delinquency before foreclosure begins, and they might also spend more time in foreclosure before the bank takes back the home.Nearly 8% of mortgages held on bank balance sheets were in the foreclosure process at the end of March, compared with 2.6% of those backed by Fannie and Freddie and 2.8% of those backed by government agencies.
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