Why Do Lenders Modify Mortgages?

Jan. 5, 2011 - PRLog -- Let’s take a behind the scenes look at what happens when a lender decides to foreclose on a house.  There are many expenses that are associated with the foreclosure process that they typical homeowner isn’t aware of, such as attorney fees, insurance, court cost, taxes, and rehabilitation expenses to get the property ready to be put back on the retail market for sale.  In addition all those payments that they should have collected from the homeowner are loss revenue for and then they have to pay a real estate agent to sell and market the property for them.  

Especially in this declining market, lenders really have to think long and hard about foreclosure because most of the properties are already underwater in value and to foreclosure they are looking on investing on average about $50,000 or more during the foreclosure process and nowadays the process is even longer so it costs them even more to foreclose today compared to a few years ago.

This is why lenders want to modify loans and leave foreclosure as a last resort for the lender as it’s more favorable for the lender to work out some type of loan modification plan to keep homeowners in the property and to get the homeowners to make affordable, on time monthly payments again.

One of the most talked about myths about foreclosure is that your lender wants you home.  While this may seem true if you ever dealt with you lender with a loan modification, where all they do is have you  run around in circles, it’s not, as lenders are in the business of lending money and not the owning real estate business, says Marlon Baugh, Author & Loan Modification Expert."


Florida - based loan modification expert Marlon Baugh specializes in providing information to consumers that allows them to make informed decisions about their mortgage financing options and learn the insider secrets that can save them thousands of dollars over the life of their loan.

Marlon Baugh is available for interviews and will welcome all your mortgage related questions.

http://www.youtube.com/watch?v=5A0wsYr_H6I



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Marlon Baugh is a nationally-known mortgage expert. Since 2003, he has specialized in mortgage loans for people with Bankruptcies, Foreclosure or with other credit issues. For more insider reports please visit http://www.insiderloanmodificationsecretsexposed.com