Lenders More Willing To Work Out Payments With Homeowners
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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