Why do lenders modify loans?
Lenders frequently approve modification for homeowners in financial difficulty. Make no mistake, lenders don’t do it out of compassion for you or your family. They do it to cut their losses and to make the best of a bad situation. Lenders and investors lose from 20 to 60 cents on the dollar if forced to foreclose. That’s typically $50,000 or more per foreclosure. It’s strictly a “dollars-and-sense” decision: modification maximizes what they collect, by enabling you to pay.
