Secrets Your Mortgage Broker Will Not Tell You

Like it? Share it!

Facebook

Pinterest

Reddit

Twitter

Google+

Banks Make More Money If You Can’t Pay

Source: https://www.orionprop.com

Again, banks are loan servicers, and get paid to service the loan whether or not the borrower can pay. When a loan defaults, more servicing is required, so the servicer makes more money. When the servicer handles a foreclosure, the loan tracker places proprietary real-estate-owned insurance on the property which costs around 10 times more than typical homeowners insurance. By foreclosing on the property, the lender can then “flip the house” and get another occupant paying for it, while still holding the foreclosed borrower responsible for their term. This is a trick of the trade. While banks don’t go around wishing you can’t pay the mortgage, they have many different safety clauses. Knowing this will help you understand the system. Your broker will surely not mention this.