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Lenders make foreclosures a businessLenders have every incentive to prevent foreclosures. If a foreclosure must take place, lenders want it to proceed quickly and inexpensively."No legitimate lender wants foreclose, and the reason why is that the losses are very substantial," said Bert Ely, a banking industry consultant in Alexandria, Va. "Foreclosure is not a profitable activity, let me assure you." Foreclosure is so costly to lenders -- on average they recoup about two-thirds of a home's value -- they should be able to foreclose using their own staff rather than having to hire outside attorneys, Ely said. "The banks should be allowed to do it the cheapest way possible," Ely said. Yet as interest rates and the foreclosure rate continue to rise, federal and state lawmakers and policymakers could be asked to scrutinize the vastly different foreclosure processes nationwide. In 30 states, consumers can have their case heard by a judge. In the other 20 states, nonjudicial "trustees" generally oversee foreclosures, but state laws vary as to who can act as a trustee. In some states, the foreclosure company can serve as trustee. click here for complete article Do you have questions on the selling of your home, condo or building lot? Visit 888SOLDin9 to talk with our Jacksonville FL 888soldin9 partner about your personal financial situation. Our Jacksonville FL partner, Jim Tallent buys, sells, renovates and rents homes and properties in Jacksonville FL, Duval County FL and Northeast Florida. |