Lenders on Foreclosures: Let’s Get This Over With
Instead of a national foreclosure moratorium - an idea that has the support of President-elect Barack Obama - homeowners in trouble should just accept foreclosures and move on, lending industry insiders say. Their comments come from Housing Wire, which cited an industry survey quoting lenders as saying a national moratorium would have dire consequence for the housing market.
From Housing Wire:
“The banks don’t know how badly they’ve messed up and so they are like deer frozen in the headlights,” said one respondent. “The people who can’t pay for their houses need to be able to move on, not hang around longer. Do the short sales, do the foreclosures and get this mess over with.”
It should get interesting if the Obama administration pushes early on for the moratorium. Lenders have a powerful, well-funded lobby, and they’re not likely to just sit by and let it happen. Also, the “let’s get this over with” attitude probably has something to do with the slow progress of loan modifications.
It’s also something easy to say when it’s not your home at risk.