If the cost of foreclosure calculation results in a net gain to the lender, how should associations use this gain when comparing the cost of restructuring and the cost of foreclosing?
If the cost of foreclosure calculation results in a net gain to the lender, then the “cost” of foreclosure is zero because full recovery of all foreclosure costs will be obtained (this situation will usually arise where the value of collateral exceeds the debt). If the cost of restructuring is also zero, the lender will have to restructure the loan because the Act requires the lender to restructure when the cost to do so is less than or equal to the cost of foreclosure.
