It can’t be a secret that was only divulged this time.
Remember when you demanded so much from your lender that you thought customers are always right? Well, those days may be over. In a recent conference with real estate experts at the Real Estate Board of New York, panelists said that in some cases, the present relationship that a borrower has with a bank is their basis for coming after them once they default and suffer foreclosure. The Real Deal Online writes, “Lenders mulling which borrowers to chase into foreclosure will be considering not only the viability of the struggling real estate projects but also the relationship with the developers, finance experts said at a panel last night held at the Real Estate Board of New York.
“While most lenders do not want to take back distressed properties and are content to extend loan terms, in certain situations they will move against the owners. In those cases, aggressive efforts to take back properties will at times be made based on the level of business the borrower has with the lender, said panelist Steven Koppel, partner at law firm Jones Day.
“‘A strong bank may have more of an appetite to force the issue, especially if the borrowing entity is not a client they want in the future or is in an asset class they are not really interested in,’ Koppel said.”
Now, this can’t be a secret that was only divulged this time. We all know that these folks are also looking at our PR skills. Talk about your cooperation when your mortgage was getting approved. Not only do we have to comply with the loads of paperwork, we also needed to check if we’re still on the right track together with our lender.
However, what’s different with these statements by Koppel is that it has gotten much clearer for Main Street America that their loan applications, status and future all lie in the hands of their lenders. Therefore for those whose excuses were unacceptable and eventually sunk in foreclosure, they should figure out why that mortgage officer is ought to get back at them anytime soon.
But what about those who were victimized by predatory lending? Wouldn’t their ill-feelings towards their lenders result in a more complicated situation should Koppel’s testimony be a universal practice amongst his peers?