According to a Wall Street Journal report, as many as half of all foreclosure homes end up getting trashed to some degree by the former owners. This can be a huge extra expense for any bank attempting to resell the property to a wide pool of buyers due to the rehab cost and management.

I have been in homes where the house was stripped of everything that had any value, but this is describing a growing amount of what could be more like vandalism out of spite. Another reason that the banks and lenders are considering all options when it comes to keeping borrowers in their homes.

EMC is one that is renegotiating loan balances lower even for borrowers who are NOT in default yet. They figure it is better to take the loss now, and continue to get a lower income stream from the borrower, than to take a property back and have to deal with managing that additional property inventory.If you have a mortgage with EMC - try asking for thier “work out” department - I know they are helping people directly with renegotiations of their balances. For the homeowner, this is tremendous.

from online.wsj.com posted with vodpod

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