Question: If so much of the economic losses in the mortgage industry were from unscrupulous brokers submitting false documentation how come there is such a high re-delinquency rate on loan mods that the banks originated themselves?
Answer: The attitude of non-accountability has enabled brwrs to take the attitude of I’m only going to make the payment if its in my best financial interest.
Why not they can stay in their homes for 6-12-18-24 months, make 0 payments and then if the bank threatens foreclosure they can claim they are being unfairly evicted from their homes and just a victim of the economy. And if they live in a predominantly minority area forget about it, just call your local congressman/councilman and tell them you aren’t going to vote for them if they allow the bank to foreclose and you should be good. If all else fails just call a lawyer and they can probably find a piece of paper that the lender forgot to dot an ‘i’ on or cross a ‘t’ and then your mortgage may get wiped away for good (ultimate come up).