Quote:
Originally posted by SlaveNoMore
Sit on a portfolio of useless REO? Or more likely do a workout and eat half the UPB?
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Hey, the borrower has to call you back first. And taking back the real estate allows some deferral on recognizing the loss. Plus, if the 2d lien is with another lender (common) then you don't have to deal with them, too.
In any given situation, of course a workout is the better course for almost everyone. I take the "bailout" as being a pre-negotiated framework for workouts with a pre-determined set of qualifcations on the borrower side. Let's the lenders plow through a bunch of re-negotiations using trained apes.
