Hey banks! Isn't some monthly payment better than none?

Posted by Chris on October 23, 2008 at 15:55:24:

Restructured loan = continued payment to bank
Foreclosed house = no payment to bank

Why is opting for the foreclosure better? I just don't get it. I always thought some level of payment is better than none. I understand the full monthly amount is desireable. What makes no received monthly payment equally desireable - as evident by the continued allowance of foreclosures to occur? Uh oh... I think I got it. The bank will sell the foreclosed house in an attempt to recoup the losses accrued by the lack of monthly payments. However, what if the house doesn't sell due to the glut of other foreclosures!? Hmmm...maybe that steady stream lesser-amount monthly payment isn't so bad afterall.

Follow Ups:


Name    : 
E-Mail  : 
Subject : 

Comments: