Many borrowers seem to feel its okay to back out of contracts (i.e. short sales, foreclosures, BKs) and their financial obligations and promise to pay, so why shouldn't lenders be able to do the same?
Imagine in 5 years a bank contacting a borrower and saying, "you know, we loaned you 300k at 3.25% on a 30yr fixed back in 2013, but rates have gone up and the value of the property have gone up too." "We're losing money and feel your loan just isn't worth what it was when we loaned you the money, so we're going to either raise the rate or Short Sale your mortgage."
The fact are, banks have basically been the victims of extortion by many who have threatened to force them to foreclose if the borrower was not allowed to Short Sale their property.
Could you imagine if you loaned your money to a person to buy a property and simply because the value dropped they walked away and decided not to pay you?
What happened to Integrity, Honesty, Fulfilling Financial Obligations and Promises To Pay Bank Money on the terms agreed?
I'll be glad when the phrase Short Sale is just bad memory that happened once back in the early part of the 2000s