Why would my lender prefer a loan modification vs a foreclosure?
A foreclosure is a very timely and expensive process. By negotiating new terms or a principle reduction for the current homeowner, the lender avoids having to take possession of a property that may require additional rehab work and maintenance costs while it sits on the market for several months waiting to sell.Basically, it is more expensive to foreclose in most cases than it is to negotiate with a current homeowner.
