> because if someone defaults, I now own the home and can sell it to recoup my losses. From what I know that's a rare scenario. Stressed asset (i.e., mortgage

> because if someone defaults, I now own the home and can sell it to recoup my losses. From what I know that's a rare scenario. Stressed asset (i.e., mortgage contract) holder typically sells off that asset to someone else at a discount. The buyers are those someone who specialise in holding semi-toxic assets and know how to make money out of it. Lenders typically don't want to deal with the underlying assets. It's time consuming and not their speciality. Lenders just want to recoup whatever money they can fast and be done with it.