[Redbob]

"The banks want to avoid foreclosures, and if they can do so and still get a decent albeit smaller return they will be tickled to death."

That's a novel theory; can you support it?

[ClearCase_guy]

I saw "It's a Wonderful Life" and I think bankers can give out their own cash to help people out when credit gets tight. Sure, the bank ends up making less money, but it's really all about feeling good at the end of the day. This usually seems to work out pretty well for all parties.

[/liberal]

[Always Right]

That's a novel theory; can you support it?

Are you familar with foreclosures? Do you think banks make money on them? Banks typically have $25K in legal fees alone to foreclose on a home. During the months it takes, they are collecting no interest. Then the home is usually trashed and is sold in a distressed sale. Typically a foreclosed home sells from 25-50% of its market value. A foreclosure is a huge lose to the bank. It is no novel theory, talk to a banker sometime.