Journal Article

Foreclosure alternatives: case for preserving homeownership

Abstract: Residential foreclosures have become a growing concern in the lending industry. GMAC-RFC (Residential Funding Corporation), America?s largest private issuer of mortgage-backed securities and a leading warehouse lender, estimates that it loses over $50,000 per foreclosed home. According to the U.S. Census Bureau?s statistical abstracts, the number of nonfarm mortgage loans in foreclosure at year-end 2003 (the latest year for which information is available) was over 500,000. This translates into $25 billion in foreclosure cost for lenders. ; Of course, lenders are just one stakeholder in the foreclosure process. What are the total costs associated with foreclosing on a home? Who is responsible for paying these costs? Are there alternatives to the foreclosure process? And if so, what are the advantages of using those alternatives

Keywords: Home ownership; Foreclosure;

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Bibliographic Information

Provider: Federal Reserve Bank of Chicago

Part of Series: Profitwise

Publication Date: 2006

Issue: Feb

Pages: 2-5