And I honestly feel, this response is the reason people give up hope, because they are critiqued for errors and hardships and are told there is no way out, when there are avenues.
If you read the entire situation, as well as the payment that was being paid, the workout payment, as well as the ability of paying almost $1000 more per month over the existing mortgage, why would a refi of a property appraised for over $40,000 in equity, merit a higher than the $1000 cushion?
And for the record, there are high default rates, because(some) brokers, agents, and lenders, are so concerned about making the sale and completing a deal, and care less about whether it defaults in a yr or so, so they sell a higher priced house under the umbrella of saying, " I know the rate is high, and the payment, but in a yr or so, you can refinance your loan, and pull out the positive equity and get a lower payment" Then the person says… ok, and gets in a situation and needs a bailout or has to sell their home. Worse case scenario, they foreclose.
That provides another reason as to why there are audits, and companies sanctioned, agents, brokers, banned, fined , and penalized with the Real Estate Commission.
and as you stated… “at best” it can be a temporary fix, referring to refinance,
The key word some people look for when they are in a problem situation is “FIX”
Rubbing in where ppl go wrong, doesnt “FIX”, it simply continues to contribute to the callous and adds to the problem, yet doesnt remove it, nor help their situation.