What does this mean to the person who is facing foreclosure on the home in
Cochin Property they love and don't want to lose? Well, upon first glance, there is some small comfort in realizing that you are not alone. This is very small comfort indeed, because it does nothing to help change your situation or save your home.
If you understand the pressures these record numbers of foreclosures are putting on the banks, it becomes very obvious, that these huge numbers of foreclosures really are good news to the person facing the loss of their home. The banks are in the business loaning money. They are in the business of making sure the money they loan out makes money. Losing money is one hundred percent the opposite of what they are trying to do. Does owning a home make the bank money? No, it costs the bank money. The only reason the bank "takes a home back" is because they, want the money they, can get from selling the home.
These days 90% of the homes offered for sale, are not bid on by anyone. That means the bank got no money. What they did get, from the foreclosure auction was a non-performing asset that costs them money to maintain. It costs them money to rehab it. It cost them money in lawyer's fees to go through the foreclosure process. And, it will cost them money in real estate commissions, if they can get it sold after they take it back. Additionally, and more punishingly to the banks pocket book, these homes can cost them millions in losses when, they get so many of these homes on their books that the federal reserve starts restricting the banks ability to do business.
Simply put, the bank doesn't want your home. The huge numbers of foreclosures the banks are facing makes them very interested in other alternatives too "taking the home back" These alternatives include workout plans, loan modifications, forbearance plans, and special payment options. The very best solution to most people's foreclosure nightmares are short sales.
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