Lenders More Willing To Work Out Payments With Homeowners

A recent Washington Post article reports that some mortgage lenders are becoming more flexible and increasingly more willing to help troubled borrowers stay in their homes. Described in the story are various options that may be available to homeowners when dealing with their lenders in making payment arrangements.

One caution in negotitaing with lenders is directed to financially strapped homeowners who have significant equity in their homes, where "[i]f the lender then forecloses, that lender is protected against loss because the equity in your home could cover the loan balance and foreclosure-related costs."

According to industry expert Jack Guttentag, "It's a paradox, but the borrower who gets into trouble and has no equity is in a stronger negotiating position with the lender than the borrower who has equity."

For more, see Fighting to Keep the Roof (Strapped Owners Find Help From Their Lenders).
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