Reports Reveal it's Cheaper for Large Banks to Foreclose than to Offer Loan Modifications

The NCLC (National Consumer Law Center) has released a new report which discloses information about mortgage servicers incentives and lack there of.  Ultimately, the large banks have no incentive to help homeowners stay in their home and so they deny loan modifications and move right on to foreclosure.

Diane Thompson, an attorney with NCLC stated, "One common sense solution to the foreclosure crisis is to modify the loan terms in more instances. Foreclosures are a costly ordeal for the homeowner, the lender, and the community. Yet they continue to outstrip loan modifications becasue servicers have no incentive to help borrowers stay in their homes." VIEW REPORT