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Article: Postponing The Day of Reckoning.(Mortgages)(finance to real estate industry)
- Article from:
- American Banker
- Article date:
- August 26, 2009
- Author:
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Byline: Kate Berry
Pick up just about any city's newspaper or turn on any news show, and if the topic is real estate, the banking industry is likely being lambasted for foreclosing on troubled homeowners.
But industry data and anecdotal evidence suggest banks and servicers have been dragging out the process - not rushing to kick people out of their homes.
Granted, the deferrals may not be motivated by compassion, or even political pressure. Rather, banks and mortgage investors want to avoid repossessing hundreds of thousands of homes, which would produce losses and hits to capital.
"The goal is to hold off on foreclosures and take ...