(Reuters) - A recent survey conducted by Fitch indicated that subprime servicers have
historically used payment plans to resolve defaults in approximately 50% to 75%
of the cases.
However, the survey showed that the effectiveness of repayment and
forbearance plans is decreasing. In addition, payment plans are not expected to
work for some borrowers facing ARM resets, because they will not be able to
afford the new monthly payment. Conversely, short sales and deeds-in-lieu
are being used more
frequently.
Read more at Reuters.com Bonds News
historically used payment plans to resolve defaults in approximately 50% to 75%
of the cases.
However, the survey showed that the effectiveness of repayment and
forbearance plans is decreasing. In addition, payment plans are not expected to
work for some borrowers facing ARM resets, because they will not be able to
afford the new monthly payment. Conversely, short sales and deeds-in-lieu
are being used more
frequently.
Read more at Reuters.com Bonds News
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