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why do banks want you to refinance

Posted on: 03rd Nov, 2010 08:02 am
If i was the bank and you made a deal with me, that would be the end of it, you would owe me the full amount of the loan. Is it because of so many homes going into forecloseure that to protect the banks they need to back up and punt? could someone enlighten me because a banker is calling me for this service right now and i want to know why would they want me to do this.
Hi cplane,

Welcome to mortgage fit,

Whenever there is a recession in the market person/institute think that even if I get less profit in the deal that is OK but my capital should not go in vain.

Currently most of the real estate market is going through the recession and thus bank has the approach that they should not loose the capital if person is unable to pay the mortgage for subsequent years and end up in foreclosure...

No bank like foreclosure because they hardly recover their principle amount in this.........

As far as refinancing is concerned they are ready to accept less margins but do not wish to loose or stuck their capital in a bad loan....

Feel free to ask any further query if you have......

DIPA
Posted on: 03rd Nov, 2010 09:33 am
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