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I am certain there's information missing from this story.
Banks absolutely hate to foreclose. It's a dead-loss proposition; the loan ceases to provide the bank with income, and you can't pay your employees or your vendors with a house. Atop that, there are huge responsibilities, legal, financial, and practical, involved in assuming ownership of real estate -- the same responsibilities a homeowner assumes -- and they're responsibilities a bank most emphatically would prefer not to assume. (Banks don't mow lawns or fix busted windows, and they absolutely hate to pay property taxes with their own money.) Foreclosures occur only after the bank has "gone to the wall" trying to keep the borrower in good standing.
My wife, you see, was for five years a foreclosure analyst for a major Northeastern bank. Her principal responsibility was to try, with every tool at her disposal, to prevent foreclosures from occurring; she succeeded in more than 90% of her cases. Today she dispenses advice to persons in difficulty over their mortgage obligations. One of the approaches she suggests most frequently is: Propose a short sale to the bank.
In a "short sale," the bank agrees to accept a modest loss in exchange for not having to foreclose. The sale of the property frees the delinquent borrower of all obligations, in exchange for satisfying a portion -- usually 70-80% -- of the amount still owed on the mortgage. The delinquent borrower still has to move, of course, but he moves free of mortgage debt and avoids a black mark on his credit history. Everyone involved is better off than had there been a foreclosure.
Other avenues exist. All of them are preferable to foreclosure...especially for the bank. (Have you any idea how ridiculous a bank president in a three-piece suit looks cleaning out the gutters?)
Great story Samantha and wonderful rant. It seems like they work against themselves at times and this woman was, indeed, a god send.
Bless her heart.
Samantha, Thank you for this heartwarming story. It is always wonderful to see the kindness that can be extended from one human being to another. This world is such a place that many fight to survive and we forget to extend that helping hand to others. Not everyone can afford to help someone this way but we can all do soemthing no matter how small that will seem big to someone less fortunate.
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