Industry NewsMortgage

Distressed owners: Lenders do not want your home

Help is available, but be prepared to do some homework

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Editor's note: This is the latest installment in a series highlighting ways real estate agents can successfully navigate the distressed property market. There is good news -- previously reported, but little understood -- for homeowners who are at high risk of losing their home. Lenders do not want to foreclose if it's possible the homeowners can be helped. If homeowners are willing to cooperate with your mortgage servicer, there is practically no reason to be foreclosed on in today's market if your loan is with a national lender. Short-sale help is the lenders' antidote. According to a Chase spokesman, the lender not only does not want to foreclose, but the lender doesn't want the homeowner to move if the lender can help the owner stay in the home. And there may be a good chance the owner can stay. A bank's first preference, I'm told, is to modify a homeowner's mortgage -- lowering the monthly payment and keeping the owner in the home. If that doesn't work, the bank doesn't w...