They would be afraid that the lender would publicize their addresses if they fell behind in their payments, and they wouldn’t want all of their friends to know that they were having financial problems. Furthermore, a large inventory of foreclosures could make the lender’s financial position appear shaky, and people might hesitate to deposit money [...]
To provide a context here, one REO specialist for a major lender told me that it cost one million dollars per month to cover the expenses for the 500 properties in his inventory! Problem #3—Money must be held in reserve to cover “nonperforming assets.”
The foreclosure “stigma” that conjured up an image of an evil banker with a black cape, moustache, and top hat is a long-forgotten memory. Lending institutions have become reluctant property owners, charged with the overwhelming task of managing, marketing, and selling the repossessed properties in their inventories. Here are five reasons why foreclosures are a [...]
