Lenders back off on evictions

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Despite being months behind on their mortgage payments, many strapped residents are hanging on to their homes, essentially living rent-free, Alana Semuels reports. Pressure on banks to modify loans and a glut of inventory are driving the trend.

With a glut of inventory in places like Southern California’s Inland Empire, Nevada and Arizona, lenders are loath to depress housing prices further by dumping more properties into a weak market. And, allowing borrowers to stay in their homes helps protect the bank’s investment.

“If the person’s in the property, there’s less chance for vandalism, and they’re probably maintaining the house,” said Gary Kirshner, a spokesman for Chase bank.