The hidden truth behind the Greensboro Foreclosures

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The hidden truth behind the Greensboro Foreclosures

Posted On : Jan-13-2011 | seen (375) times | Article Word Count : 519 |

Foreclosures are usually considered as the last resort by the lender banks, when the borrower defaults on the mortgage payments consequently for a few months. Foreclosing the property is often the bank’s only option in order to reduce the losses it incurs by lending money for the property to the borrower, who has no longer paying for the same. Though this process might seem very simple on the face value, there are secrets behind the Greensboro Foreclosures which the banks often try to hide.
The first and the foremost truth that the bank tries to hide is that it does not want to really foreclose the property of the defaulters. This is because the bank is a financial institution, rather than a real estate business. As such, the bank has to undergo a lot of hassles in order to redeem some part of the money from the loan of the defaulter. This provides the additional benefit that those unable to pay their installments have the leverage to confer with their respective banks in order to avoid the foreclosure of their properties.
Most of the banks nowadays have a loss mitigation department, in order to work out loans problems with clients and subsequently avoid the possibility of foreclosure. The defaulters on the bank loans can easily contact this particular department of their bank in order to work out restructuring of loan repayment in case they are having problems in making the mortgage payments. However, it is pivotal to try and negotiate such arrangements as early as possible, before it gets too late to the point of foreclosure. Customers can call their banks directly in order to talk to the loss alleviation department.
The procedure of loan modification comes under the aegis of the loan modification department. A loan modification can imply a change in the interest rate, the mortgage term or even the mortgage amount of the loan of the defaulter, depending on the negotiations with the lender. However, in order to get a loan modification to avoid Greensboro Foreclosures, it is pivotal for the defaulter to have legitimate hardships such as loss of job or high mortgage repayment rate.
Another fact that the bank tries to hide from the defaulters is that it is really expensive for it to foreclose on any property. Many people tend to think that the banks reaps in a lot of profit by foreclosing on the properties of the defaulters but the reality is that the bank actually loses money on the whole even after the foreclosure, due to the legal overheads involved as well as the loss of the repayment of the outstanding mortgage balance. Even in the case of short sale, the selling value of the property is often less than the outstanding balance of the defaulter in the loan mortgage and thus the bank still makes losses.
The customer service representatives from the bank do not possess any power to negotiate the payment terms or offer loan modifications. As such, the key to avoid Greensboro Foreclosures is to bypass the customer service and rather talk to the relevant loss mitigation department.

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<h1>The hidden truth behind the Greensboro Foreclosures</h1> Author: <a href='http://www.articleseen.com/profile_Julie Thompson.aspx'>Julie Thompson</a> Foreclosures are usually considered as the last resort by the lender banks, when the borrower defaults on the mortgage payments consequently for a few months. Foreclosing the property is often the bank’s only option in order to reduce the losses it incurs by lending money for the property to the borrower, who has no longer paying for the same. Though this process might seem very simple on the face value, there are secrets behind the Greensboro Foreclosures which the banks often try to hide.
The first and the foremost truth that the bank tries to hide is that it does not want to really foreclose the property of the defaulters. This is because the bank is a financial institution, rather than a real estate business. As such, the bank has to undergo a lot of hassles in order to redeem some part of the money from the loan of the defaulter. This provides the additional benefit that those unable to pay their installments have the leverage to confer with their respective banks in order to avoid the foreclosure of their properties.
Most of the banks nowadays have a loss mitigation department, in order to work out loans problems with clients and subsequently avoid the possibility of foreclosure. The defaulters on the bank loans can easily contact this particular department of their bank in order to work out restructuring of loan repayment in case they are having problems in making the mortgage payments. However, it is pivotal to try and negotiate such arrangements as early as possible, before it gets too late to the point of foreclosure. Customers can call their banks directly in order to talk to the loss alleviation department.
The procedure of loan modification comes under the aegis of the loan modification department. A loan modification can imply a change in the interest rate, the mortgage term or even the mortgage amount of the loan of the defaulter, depending on the negotiations with the lender. However, in order to get a loan modification to avoid Greensboro Foreclosures, it is pivotal for the defaulter to have legitimate hardships such as loss of job or high mortgage repayment rate.
Another fact that the bank tries to hide from the defaulters is that it is really expensive for it to foreclose on any property. Many people tend to think that the banks reaps in a lot of profit by foreclosing on the properties of the defaulters but the reality is that the bank actually loses money on the whole even after the foreclosure, due to the legal overheads involved as well as the loss of the repayment of the outstanding mortgage balance. Even in the case of short sale, the selling value of the property is often less than the outstanding balance of the defaulter in the loan mortgage and thus the bank still makes losses.
The customer service representatives from the bank do not possess any power to negotiate the payment terms or offer loan modifications. As such, the key to avoid Greensboro Foreclosures is to bypass the customer service and rather talk to the relevant loss mitigation department.About the Author: Julie Thompson, has been working on ForeclosureListings.com studying the foreclosures market, helping buyers on the finer points of <a rel="nofollow" href="http://www.foreclosurelistings.com/list/NC/GUILFORD/GREENSBORO/">Greensboro Foreclosures</a>. Try to visit ForeclosureListings.com and find all related information about <a rel="nofollow" href="http://www.foreclosurelistings.com/">foreclosures</a>.
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Author Resource :
Julie Thompson, has been working on ForeclosureListings.com studying the foreclosures market, helping buyers on the finer points of Greensboro Foreclosures. Try to visit ForeclosureListings.com and find all related information about foreclosures.

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