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True, foreclosures need to be initiated. What should a bank do about a mortgage thats 3 months delinquent? Should they just stop collecting? If its possible
by JackFr 8y ago
True, foreclosures need to be initiated. What should a bank do about a mortgage thats 3 months delinquent? Should they just stop collecting?
If its possible that they can reasonably modify the loan to terms that make repayment feasible, they should as it's a win-win, not because they are contractually obligated to in any way. But if given what they know about the property and the borrower's income, there is no feasible way to mod the loan, prudence requires that they foreclose.
This "bug" mistakenly put people in the wrong category.
- mikeash 8y agoRight, so, instead of helping people back from the edge of the cliff, they shoved them off. The answer to your question seems to be that they should examine the account and offer a loan modification if certain conditions are met. They failed at this for these people. That other people aren’t eligible for modification and would be foreclosed on regardless is not relevant here.