The Real Deal Miami

Homeowners offer homes to bank

January 28, 2009 12:37PM

CNBC’s Diana Olick, Susan Wachter of Wharton Business School, Carl Horowitz of the National Legal and Policy Center and CNBC’s Tyler Mathisen last week discussed the fact that banks and homeowners are increasingly choosing not to go through the foreclosure process. Instead, homeowners are voluntarilly giving their homes to the bank. Horowitz said that allowing homeowners to avoid the foreclosure process implies that there are no negative consequences to not paying a mortgage. Wachter said mortgage servicers receive incentives for allowing some mortgages to fall into foreclosure.