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Do banks prefer loan modifications or foreclosures?

As time goes on, banks are becoming more and more willing to do loan modifications. I would say six months or a year ago, the answer was 'no' whenever a borrower came to a, a bank for loan modification. But as the time is going by and the banks are losing more and more money on the non-performing loans and the foreclosure sales that are not uh, occurring, the banks are st-, starting to change their tune. And especially with the bailout, and the new laws that are coming around with, in California, uh, they are becoming, they're starting to wake up and smell the coffee. And realize that they need to make some money of these loans and the way to do that is to, is to get a loan modification and get the borrower on a payment that they can afford. If they need to extend the term, or if they need to lower the interest rate, something is better than nothing at this point. And so that's the way we're really starting to see banks are becoming more open to the idea of loan modificaiton. My name is Damion Nasire. I'm a partner in the law firm Howard & Nasire. We're based in Southern California, and we help people save their homes. If you've been the victim of a predatory loan or you're facing foreclosure, give us a call.

tags: loan modification bank preference mortgage debt relief predatory lending foreclosure bankruptcy lawyer law firm attorney Orange County Los Angeles California Howard Nassiri

attorney: Howard | Nassiri, LLP