BURNETT: Here—here is what is going to happen, Chris. The banks don‘t want people to foreclose on their mortgages. That‘s not good for the banks. I mean, do you think the banks really want to say, oh, guess what, we have this giant real estate portfolio in Des Moines and in Kansas City and in San Diego? They don‘t want to take possession of these homes. The banks have every incentive in the entire world to try to work it out with each individual borrower. So, you know, you go to your bank and say, look, I can‘t make the payment, they are going to try to find some sort of a payment scenario that you can meet your payment. I mean, that‘s the truth. Banks don‘t want a big portfolio of empty homes with weeds growing in the yards.
The problem is that the loans have been bundled and sold as securities on the open market, so in many cases, there isn't a bank to negotiate with.
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