Your Lender Benefits by Keeping You
With all of the negativity I have been hearing about mortgage companies, I just wanted to speak out like I have done many times before. Your mortgage company benefits by keeping you in your property and paying. Some homeowners think that their mortgage company is out to get them out of their property at any cost which is simply not the case in most cases. Your mortgage company usually looses money at foreclosure sales, but it is a necessary evil.
Your mortgage company is a business and they are out to make money. Keeping you in your property and paying is making them money, and the last thing they would want to do is to stop those payments from rolling in. Even if a small percentage of mortgage companies were to kick their borrowers out of the property for not paying current and send the properties to foreclosure sale, that might put them at a great risk of possibly going out of business. When you pay they get a steady stream of income that keeps them up and running. They expect a small return each of their investment, your property is a part of their investment.
In fact most mortgage companies, servicers, and banks are doing their best to work with the government in order to get some of the lucrative mortgage stimulus money into their business. They have been waiting on this injection on funds for their businesses for some time now. Some might expand and hire more employees, get more technology, or acquire more assets. Regardless of what they do with the funds it will be a positive for them.
You have to think like a well oiled business, they are out to make profit, not to loose income, downsize, or even go out of business. Those things happen due to unfortunate situations or circumstances, and are avoided at all costs whenever possible. The only way a lender would try to get rid of you would be for good reasons and they would follow your state’s law to get rid of you. If you are paying as you are suppose to, then you have nothing to worry about. On the other hand, if your are 6 months past due with your house payments, and keep making excuses after excuses as to why you aren’t making your contractual agreement then there is a problem. They will do everything in their power to oust you off the property as quickly and cost effective as possible. That’s what foreclosure attorney are hired for. Their job is to follow the law and get you out of the property as soon as the law allows; But if you are law abiding, god fearing citizen making your payments even if you are a bit behind, you better believe they will try to work with you. The average foreclosed property cost your lender $30-40,000 in losses; but they might rather to sell the property at a foreclosure auction, and get rid of someone who is $45,000 past due with their payments than to try to keep that person in such a delinquent state. That person might not have any prospect of paying anytime soon and will only get deeper in debt, and cost a lender even more in the long run.
So a lawful business decision is made for the property to go to foreclosure sale.Most homeowner that are delinquent are delinquent due to circumstances, and not by choice, however there are some bad apples. So are delinquent by choice, maybe due to a grievance with their lender, or it could just be how they operate. Regardless of the situation, your lender has to make a business decision that affects keeping their business afloat. Unfortunately that is how it usually is. I know a lot a of good folks end up in a bad situation from time to time.
