Sweeeeeet. Living the American dream. /s
“They have not made a mortgage payment in more than six years.”
You can bet your bottom dollar these folks have had the conversation... more than once... about King Obama coming to their rescue and wiping out their mortgage debt. “We just need to hang in there long enough, honey.”
The new lender would rather work out lowering the payment because they’re getting something.
If they foreclosed, odds are good it would be a loss.
I mean this home is underwater and foreclosure costs the lender more money than they would make selling it again on the market.
That’s why it hasn’t been foreclosed in six years. Their lawyers told them, look you wanna go ahead - you won’t recoup this investment.
And the Boatengs can file for bankruptcy and walk away from it. The mortgage company gets left holding the real estate equivalent of junk bonds.