Los Angeles Foreclosure Timeline - Why it IS taking so long to foreclose
In May I questioned why it was taking so long to foreclose on Los Angeles homes.
Well apparently the answer is clear; it’s all about money: “But industry insiders and legal experts say the limited capacity of mortgage companies is not the primary factor impeding the government’s $75 billion program to prevent foreclosures. Instead, it is that many mortgage companies are reluctant to give strapped 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 borrowers remain delinquent, the greater the opportunities for these mortgage companies to extract revenue — fees for insurance, appraisals, title searches and legal services." Read the remainder here
Well apparently the answer is clear; it’s all about money: “But industry insiders and legal experts say the limited capacity of mortgage companies is not the primary factor impeding the government’s $75 billion program to prevent foreclosures. Instead, it is that many mortgage companies are reluctant to give strapped 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 borrowers remain delinquent, the greater the opportunities for these mortgage companies to extract revenue — fees for insurance, appraisals, title searches and legal services." Read the remainder here
Posted by Phyllis Harb at 8/6/2009 5:27 AM 
Categories: All about Money, Foreclosures
Tags: the reason it is taking so long to foreclose is because servicers are collecting huge fees
Categories: All about Money, Foreclosures
Tags: the reason it is taking so long to foreclose is because servicers are collecting huge fees
Comments