Question by Nathan: Why would mortgage lenders rather forclose on an upside down mortgage than refinance?
If the balance is $ 350,000 and the house is now worth $ 200,000 why foreclose instead of re-negotiate the terms of the mortgage? (eg monthly payments/ APR)
Best answer:
Answer by $ so fresh so clean$
Because of the credit crunch. They may be a little hesitant to allow a refinance to borrowers.
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