posted on Aug, 21 2012 @ 09:08 AM
reply to post by Xtrozero
Well for one, they were already bailed-out by the American tax-payers to help keep people in their homes, but instead pocketed that money. Do you
personally know or have heard from one person who has received a modification? Probably not, because the banks are not interested in working with the
There are many scenarios in which the bank can make money on a foreclosure depending on the situation.
Here's one scenario: This is an actual real life example of an FHA foreclosure. A person buys a home for roughly $116,000. Makes payments for six
years. The bank has made the money from the bail-out plus roughly $45,000 in interest and principal payments from the homeowner. The bank forecloses.
The person lives there for a year for free. When the eviction is complete, the bank turns the home over to FHA and is paid back all of the unpaid
balance of the loan. the house is now owned by the government and is their problem. It is placed in the HUD program.
I did a quick google search and found many other ways they can make money. You can try it for yourself if you'd like.
Here's another example:
And here is an article that explains it a little better than I did:
There is plenty of info out there if you do not trust the above sources, those were just pulled up in a quick search.
But trust my friend, RARELY, if ever, do banks lose money on a foreclosure.
(edit: srry dont know how to imbed video, so I just put in the link)
edit on 21-8-2012 by Blacksheep1 because: (no reason given)