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

Posted by NJD on October 25, 2008 at 11:29:31:

In Reply to: Hey banks! Isn't some monthly payment better than none? posted by Chris on October 23, 2008 at 15:55:24:

"Isn't some monthly payment better than none?"

Perhaps 30 years ago, when your loan was made and serviced by a local bank, that would have been true.

Then, as now, a lender will only do what is in its best, financial self interest.

Would you be surprised to know that many subprime or Alt-A loans originated in the last few years which were bundled into and sold as securities carry a derivitive insurance which pays the securities owner
when individual loans, or an entire portfolio fail to perform?

Actually, the "bank" as you call it may be realizing more profit by keeping your loan in default.

Sound complicated? It is.

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