Foreclosures

A foreclosure is a result of the acceleration of a debt that cannot be paid as agreed. If a bank asks for all its money all at once, foreclosure is almost inevitable. It is not a bankruptcy though. A bankruptcy comes as a result of every lender coming fast upon you demanding payment in full. I often wonder why people who are about to lose title to their property do not sell prior to foreclosure. Of course, if your mortgage is upside down (when you owe more than the property is worth), it would make little difference, no.? I often wonder what would happen if banks simply restructured every bad loan - dropped the interest rate and extended the term. Is 6% unmanageable? Drop the deal to 1%. Is thirty years not enough time? Extend the deal to fifty or sixty years. A hundred years from now, people will be looking back at how homes used to be financed and they will scratch their head in bewilderment. Foreclosures only happen when everybody wants their money NOW. I say: What's the hurry?