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While moral hazard is a major concern for those trying to make this foreclosure prevention program work, government regulators are more concerned with the loan modification shops that are ripping off distressed homeowners.
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That would make the foreclosure value appear higher to the banks.
No, some giant financial institutions have a bigger worry — namely, how to make the foreclosure fiasco go away.
Dave Trott also spent big bucks lobbying the State Legislature for ways to make the foreclosure process easier.
While the availability and cost of credit has changed, healthy occupancies, rent growth, lack of overbuilding and increasing rental pool of people due to foreclosures makes this investment even more attractive for retirement money.
MERS is going to make solving the foreclosure problem vastly more expensive".
The senators had planned to make foreclosure relief part of the bill, by including a measure to let bankrupt homeowners have their mortgages modified under court protection.
At some point the administration may be forced to conclude that the best option for all involved is to make foreclosure as painless as possible, and to help turn struggling borrowers into relieved renters.
In these cases, the right answer is to make foreclosure faster and less damaging to everyone else, so that homes can swiftly be bought by people who can pay for them.
The effort, led by Iowa's attorney general, Tom Miller, is in flux as several prominent attorneys general left office and their replacements decide whether to make foreclosure reform a priority.
Up to now, it's often been easier and cheaper for banks to foreclose, and mortgage servicers commonly make more in foreclosure than in modification.
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