While both Short Sale and Foreclosure are regarded as default management in mortgage and are both fundamentally similar, short sale and foreclosure have their own vices and virtues. Lenders must take prudent decisions and factor in their fiscal benefits while opting among these default management services. Short sale as a mortgage default process is a win-win strategy for both a…
mortgage default management
Following the 2008 financial crisis, the U.S. mortgage industry saw an unprecedented spike in mortgage defaults, bringing default mortgage servicing under heavy scrutiny. Since then, default servicing in mortgage has also been subjected to various government-mandated programs such as HAMP and HARP, industry regulations, settlements, procedure updates, and more. These have resulted in a messed-up mortgage landscape marked by inefficient…
Among the telltale impacts of the COVID-19 on the global economy, the mortgage industry is among the severely impacted sectors. According to a press release published by the Mortgage Bankers Association 1, the mortgage delinquency rate took a huge leap to about 4 percentage points reaching an alarming 8.22% within the second quarter of 2020. The findings of the National…