Banks and related financial entities have a serious problem on their hands when a homeowner becomes delinquent and thus a foreclosure risk. With almost every foreclosure, the bank is forced into a position where they incur substantial lossess. These losses can include:
- Legal Fees
- Non-Payment During the Default Period
- Pre-Default Property Devaluation
- Forced Sale Pricing or Lengthy Listings After Foreclosure.
What started out as, hopefully, a profitable transaction for the financial institution, is turned into a catastrophe. In 2007 Freddie Mac was reporting that the average loss was about $60,000 on each foreclosure. Now with the depressed market, it is probably even higher.
Wouldn't it be great if there was another tool available to refinance these troubled loans out of the toxic pile and into a performing, valuable asset again?
Term Ownership is that tool.