The murky decision of whether to foreclose on a property or modify is based on which is more profitable for the lender.
Lenders are deciding whether to restructure the loans by extending the term and offering lower interest (in return for more capital from the Speyers and their partners), or to simply foreclose and hope the assets will be worth more in coming years.
Or governors deciding whether to grant clemency?
Edison is still deciding whether to appeal.
Some large servicers will be allowed to use their own analysis to decide whether to modify or foreclose on a loan.
Battling cancer is difficult enough without your mortgage lender deciding to foreclose on your home just weeks after saying it was trying to help.
And a short sale is where the bank decides not to foreclose, but rather to allow the homeowner to sell the property for less than the outstanding amount owed on the mortgage.
In some states, like California, if a lender decides to foreclose on a mortgage, he cannot seek a deficiency judgment.
"Due to our lack of income, and our inability to pay the bank that funds us, the bank has decided to foreclose on this factory.
This can trigger what consumer lawyers call a "rolling default" as fees and charges snowball until the servicer decides to foreclose.
