In the first quarter of 09, the financial industry spent over $42 million dollars to defeat mortgage modification in bankruptcy. That doesn’t count what was spent in the month of April in an effort to avoid leveling the playing field on home loan modifications.
All of this money to preserve the right to lose a bunch of money foreclosing on houses that become less valuable with each foreclosure. I’m sure this must make sense to someone….
Makes sense to me. Borrowers who pay PMI foreclose and the lenders get their money plus money from the sale of the home they now own. They’re not losing as much as everyone thinks!