Why Did My Bank Decline My Loan Modification?
Why Did My Bank Decline My Loan Modification?
As a Realtor, I rely on an active real estate market to make my living. If there were a push for lenders to reduce the principal balance for borrowers nationwide, that would prevent the resale of these homes to new buyers. Not only would that mean billions in lost wages for real estate agents, escrow officers, insurers, pest control companies, home inspectors and numerous other businesses involved in home sales, but it would also reward homeowners who made poor financial decisions by allowing them to virtually purchase their homes all over again for less money and below market interest rates! Discouraging or declining loan modifications may not be a very popular practice by our country's lending institutions, but it is exactly what the American economy needs to speed its recovery.