this post was submitted on 11 May 2026
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me_irl
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The life of a mortgage is worth far more than the house. It’s in their best interest that you stay in the house for the entire 30 years of the mortgage and pay for it on time every time. Foreclosure is expensive.
Its only temporarily expensive. Let's say there's only one bank and one house. Then whenever the owners fuck up and they lose the house as expected, the same bank owns the house. Now just add an "s". Whenever everyone fucks up their houses are owned by the same banks. The banks are not there to help you. They are there to extract your labor into a form that can be monetized. So having bank X or bank Y own the house doesn't really matter... A bank will eventually own your house back. You work all your life but there's no venue to actually keep a house under your control and ownership. Just taxes are enough. Fuck up in taxes and you lose the house.
I think I understand what you’re trying to say but you’re still missing the main point. You pay interest for the full 30 years of the mortgage the most profitable position for the bank is for you to pay that interest for the full 30 years of the mortgage. It’s not temporarily expensive for them to foreclose they lose out on 30 years of being able to rake in money while doing absolutely nothing.
Yes agreed. But they still ride inflation because they create it. You were supposed to pay 1,000,000 but stopped at 7000,000? They'll sell it for 1,300,000 and someone will buy it. If not, someone will buy it at the loss. That one bank loses the 300,000, but another bank makes 1,000,000 because someone will buy it. Say your monthly was $350 and you stop paying. The bank then takes the home and pays a Realtor to sell it. A few months later they are making $450 a month. They just lost some time on it. If you pay it completely then another bank eventually owns the house when you sell one day.
Any profits from a foreclosed home go to the evicted homeowner. Banks do not make money on foreclosures. Banks do not want to foreclose on you, they want you to pay your bill.
People keep falling for this farse. Yes, the individual bank would like to "win" but all banks are the same monster. Think of the average. Go to home depot and realize that Lowes has the same shit on sale. The same monster, just different colored doors and maybe the products look different. But Stanley makes the same money regardless of where you buy your Stanley tape measure. For banks it's the Dollar TM. Regardless of where you take or put back the dollars, its the same monster behind the bank. Its only goal is to get you to go do work, to transform those hours into money/dollars. On average, they own your house. You "buy" your house from one colored "door" and then another door takes it back later when you can't pay for "whatever" reason. They figure out what "whatever" reason will be before it happens. Like if you're 60, they know you're about to return the house. You think you're leaving it to your kids. Your kids don't want to live there anymore. So they sale....who owns that loan? The banks do. So the house returns to "a" bank, a different colored door to the same monster that keeps everyone's money.
I get what you are saying, but I think you are vastly overestimating how much foreclosed houses sell for.
Interest is typically front loaded, yeah? The loan only becomes less profitable as time goes on with inflation growing and interest dwindling.
Less profitable is not unprofitable. But yes interest is typically front-loaded and if you’re still deemed to a higher risk typically have to pay insurance on top of that. In this case though they’re hedging against the fact that you’re going to move not that you’re going to foreclose.