Bank Trend to Delay Sale of REO Home: Scenario Two

Some insiders say that many mortgage companies are reluctant to give financially troubled homeowners a break, because the companies collect lucrative fees on delinquent loans.

Even when borrowers stop paying, mortgage companies that service the loans collect fees out of the proceeds when homes are ultimately sold in foreclosure. So the longer homeowners remain delinquent, the greater the opportunities for mortgage companies to extract revenue. These fees include fees for insurance, appraisals, title searches and legal services.

Additional Articles on REO and Short Sales

• Why a Foreclosed (REO) or Short Sale properties so attractive today
• Purchasing a Short Sale or REO (foreclosed) Property
• Walk Away From Home and Mortgage: Homeowner Scenario
• Bank Trend to Delay Sale of REO Home: Scenario One
• REO, Short Sales and Foreclosures: What’s It All About?
• Foreclosure - Glossary of Common Terminology