Question by frickadella: Why never banks restructure loans to cease foreclosure crisis?
Properly, I hear a lot about how unamerican it is and uncapitalist as effectively – and by the way, its the home owners fault for purchasing a residence they could not afford. Place aside that OLD worn out notion of fiduciary duty, bah, that the bank may have had when giving out loans in the 1st spot and assist me recognize this: Who wins when so numerous are foreclosing? The banks lose money, the owner loses the house, and the investors that fund the mortgage marketplace are losing too correct… and the communites, the countys and on and on? I wouldn’t anticipate the bank or investors to restructure solely for the advantage of homeowners, but can not they just defer partially the payments or locate some answer that allows the owner to hold the property and nevertheless honor their obligation, just perhaps further out?

So I guess my query is, what is stopping banks from performing something when it appears everyone is losing out?

Ideal answer:

Answer by Rex
Absolutely everyone is not loosing it. Much less then 1% of homes are facing foreclosure, the media just talks about it a lot.

You look to be missing the truth that these men and women had been provided large sums of cash, which they spent and it needs to be paid back.

No 1 need to get a free ride, especially not based on them being greedy in the first location.

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