Home, first-time buyers, mortgages

The Lender’s Perspective

Generally speaking, lenders are not in the market to retain or maintain real estate, especially foreclosure properties. They are normally in a rush to sell the property, because regardless of the sales price mortgage lenders often expect to lose money on foreclosure properties.
Attorney, legal, administrative, brokering and maintenance costs can run into the thousand’s of dollars—not including past due payments, interest and real estate taxes.
Most lenders prefer to handle all foreclosure-related inquiries and solicitations through selected attorneys and real estate brokers. If the homeowner wishes to try to redeem the property, he or she will have to communicate with the attorney. Once the foreclosure is final, potential investors may try to bid for the property at auctions or make offers on the subject property with the broker.
Many lenders just want to minimize their losses as much as possible. They have already made allowances for non-performing or bad loans. But by moving quickly and intelligently, many lenders can often minimize their losses and sometimes break even.