A foreclosed house still has value and can be resold. The bank also retains all the mortgage payments made prior to foreclosure.
They can only lose their hat on a foreclosure if the home was overvalued. It's their responsibility to assess the property. I don't see why they get let off the social hook for playing fast and loose, yet we're expected to hold the lendee's feet to the fire for doing the same.
> "the generous leniency afforded folks in personal catastrophe will not be extended next time."
What generous leniency from the other party? What leniency exists are legal/regulatory terms known to the bank before they signed the contract. If those terms increased their risk, it would be naive to assume they didn't increase their rates to cover the difference.
Further, don't misunderstand the huge glut of shadow inventory for compassion. The banks are simply dragging their feet to avoid admitting their losses.
A foreclosed house still has value and can be resold. The bank also retains all the mortgage payments made prior to foreclosure.
They can only lose their hat on a foreclosure if the home was overvalued. It's their responsibility to assess the property. I don't see why they get let off the social hook for playing fast and loose, yet we're expected to hold the lendee's feet to the fire for doing the same.
> "the generous leniency afforded folks in personal catastrophe will not be extended next time." What generous leniency from the other party? What leniency exists are legal/regulatory terms known to the bank before they signed the contract. If those terms increased their risk, it would be naive to assume they didn't increase their rates to cover the difference.
Further, don't misunderstand the huge glut of shadow inventory for compassion. The banks are simply dragging their feet to avoid admitting their losses.