The Huffington Post has a story discussing a new report by the National Consumer Law Center regarding how the compensation structure for servicers make it more financially advantageous to service the loan through foreclosure than to help prevent the foreclosure by doing a short sale or loan modification. Sad but probably quite true.
Housing News, Opinion, Statistics and Homes for Sale
Foreclosures More Profitable Than Loan Modifications To Loan Servicers
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Aaron Dickinson
Edina Realty
1-800-941-0959
Licensed in MN
That report is fairly good, however, the risk/reward relationship between lenders and servicers is a good deal more balanced than it asserts.
There is an obvious axe-griding here, in other words
Highky recommended companion reading to this report:
Calculated Risk (Tanta): Mortgage Servicing for Ubernerds:
http://www.calculatedriskblog.com/2007/02/tanta-mortgage-servicing-for-ubernerds.html