Reply #7: In my case, as far as my mortgage was concerned [View All]

I was not a victim of a bad loan (as in an ARM or interest only, or just simply one that I couldn't afford). I was well qualified for my loan and had no problem paying it, provided I was working.

I was layed off at a company that I had just started working at (only way to get ahead even a little these days is to switch jobs) and so only had 4 weeks severance pay. It took 3 months to land another job, and by then I was behind. What I was 'victim' to, was the fact that mortgage companies have no long term interest in a loan.

This is due to the fact that they will most likely sell it off to someone else in the near future, and even if they didn't, the most important thing is to prop up their company stock, which means that their profits in the immediate quarter matter more than any long term profit. So they had no interest in working with me by just adding my 2 payments to the end of the loan and giving up a little profit now in order to be able to maintain the loan, and see a long term profit on my mortgage. And all companies are run this way, A CEO is not likely going to be with a company forever, and so they do whatever they can to see short term profits at any cost, knowing that they will walk away with millions even if their decisions eventually lead to the company's demise.