By Jann Swanson
Posted To: MND NewsWire
Rising home prices have been a boon to many homeowners but may not bode as well for those who are facing foreclosure. Black Knight Financial Services’ Mortgage Monitor this month takes a look at how liquidation strategies for properties facing foreclosure can affect the recovery on principal made by lenders. They found that foreclosure and sale of the resulting REO may provide a higher recovery of the unpaid principal balance (UPB) than short sales, a reversal from just a few years ago. Using its newly developed Resolution Module the company looked at three methods of liquidation, a sale to a third party at foreclosure auction which consistently results in a fully paid mortgage, short sales in which the lender agrees to take proceeds of the property sale which is, by definition, less than the…(read more)
Via:: Higher Home Prices Suggest Foreclosure Over Short-Sales
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