Monday, September 19, 2011

"The bigger the loan, the longer to foreclose"

by Calculated Risk on 9/19/2011 01:10:00 PM

From Eric Wolff at the North County Times: The bigger the loan, the longer to foreclose

When it comes to foreclosing, lenders see some delinquent homeowners as more equal than others.

Mortgage debt of more than a half-million dollars seems to get lenders to look the other way for an extra month compared with those who owe far less, according to a North County Times analysis of foreclosure records.
...
"Just like any other business, when you have larger losses, you're going to be more cautious when you make any decisions than with a smaller loss," said Dustin Hobbs, a spokesman for the California Mortgage Bankers Association, an industry group. "There's no policy in place at any of the servicers I talked to ---- not anything top down."
Eric Wolff discusses several possible reasons including accounting rules, legal issues and lenders being more careful with larger loan amounts.