“From June 2008 to June 2009, the number of American mortgages that were 90 days or more delinquent soared from 1.8 million to nearly 3 million, according to the realty research company First American Core Logic.”

http://www.nytimes.com/2009/07/30/business/30services.html?pagewanted=1&_r=1

It appears from this article that mortgage servicers are in the business just to collect fees. They’s like to keep the foreclosure process stretching out so they can keep collecting those fees it’s in their best interest, but not in the home owners best interest. This doesn’t help when it comes to the home owner wishing to do a loan modification.

“Even when borrowers stop paying, mortgage companies that service the loans collect fees out of the proceeds when homes are ultimately sold in foreclosure. So the longer borrowers remain delinquent, the greater the opportunities for these mortgage companies to extract revenue — fees forinsurance, appraisals, title searches and legal services.

“It frustrates me when I see the government looking to the servicer for the solution, because it will never ever happen,” said Margery Golant, a Florida lawyer who defends homeowners against foreclosure and who worked in the law department of a major mortgage company, Ocwen Financial. “I don’t think they’re motivated to do modifications at all. They keep hitting the loan all the way through for junk fees. It’s a license to do whatever they want.”

It talks about how servicers may wish to foreclosure over modify.

“When borrowers fall behind, mortgage companies typically collect late fees reaching 6 percent of the monthly payments.”

Many of the top lenders are quoted in this article it’s worth a read.  After reading this article you may not believe that a lender wants to do a loan modification and that foreclosure is inevitable.  Let us help you with that situation and get the house sold as quickly as possible through a short sale. We negotiate short sales every day, and we would like the opportunity to help you.  After you read the article and are convinced that a short sale is the way to go, please fill out your info at www.wecallyourbank.com

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