Foreclosing Better Than Loan Modifications For Banks?

The Washington Post reports:

• Government initiatives to stem the country's mounting foreclosures are hampered because banks and other lenders in many cases have more financial incentive to let borrowers lose their homes than to work out settlements, some economists have concluded. Policymakers often say it's a good deal for lenders to cut borrowers a break on mortgage payments to keep them in their homes. But, according to researchers and industry experts, foreclosing can be more profitable.

For more, see Foreclosures Often Better Deals for Banks (Despite Government Incentives, Lenders Have Financial Reason to Let Borrowers Lose Homes Rather Than Modify).