Posted on 04/17/2014 7:00:09 AM PDT by SeekAndFind
So the 15% of my neighborhood that is sitting empty and foreclosed isn’t real?
A few weeks ago there was a story of a lady who was losing her house. She had a 2/28 mortgage, which meant it was interest only for 2 years and then the payment was adjustable for the next 28. Shockingly she couldn’t afford the adjustments because she only qualified for payments of the first 2 years.
Stupid of her to take the loan. Criminal for the bank to give her the loan. They gave her the loan and sold the mortgage as a AAA US backed security. They knew she couldn’t afford it but didn’t care because they planned to sell it.
Didn’t the Fed’s encourage/require lending institutions to qualify these types of loans in the name of ‘fairness’ and ‘equality’?
I have an acquaintence that is still living in her home and has not made a mortgage payment in over five years. She is perpetually negotiating with the bank and they have drawn many red lines that have turned out to be watercolor. And they get a lot of rain in Seattle.
Sure they did and the banks helped push that through. The banks also jumped on those huge profit margins while transferring the risk to the American tax payer.
To imply the “fairness and equality” regulations were the only reason the banks made these loans is extremely dishonest.
I got my $150,000 for $99,000! Thanks foreclosure!
In many cases the banks know they can’t foreclose due to poor records or improper handling of the title.
The typical limit I’ve seen for most of those is 2-3 years. I have neighbors like that but I think the bank lets them stay because at least they are taking care of the property.
Here in Florida the empty houses degrade very quickly.
uuuhhh
... maybe that's because banks have been loath to initiate the process? Like maybe as long as someone is camped out and keeping the place up they take YEARS to take them back?
Yes and yes. I told her to just drag it out as long as possible and enjoy the windfall. Sure, eventually they’ll kick her out, and then she can buy something else or even rent...
If the market ever improves the foreclosure rates will probably go up.
Its a bad situation but the people who really caused this are never going to suffer. I’m referring to politicians and the big bankers. They all made millions from these deals.
The ONLY reason?
Banks are in business to make a profit.
The means by which banks can make that profit are determined by laws, regulations and market conditions.
IF banks committed fraud by misrepresenting sales packages of loan portfolio's, then those responsible should be prosecuted to the fullest extent of the law.
IF Federal guarantees or requirements induced the banks to qualify certain lenders, then those responsible should also face the consequences of their actions.
This is QUITE honest.
Tell her to apply for a HAMP modification. Drop her rate to 2%, recapitalize missed payments (banks love that!), and she'll keep her house.
If Sam Clemens were still alive, he'd say there are 3 kinds of lies: lies, damn lies, and HAMP modifications.
It ended because banks could not stomach having one more foreclosed abandoned home on their books.
The above chart tells me that the foreclosure rate is still HIGH by historical standards. People became aware of mortgage crisis sometime in late 2007. We’re still ABOVE the 2007 foreclosure rate.
So, NOPE, the crisis has NOT ended.
Still high but the “crisis” is over. The rate has been trending down for the last 4 years. The pig has moved through the python ($1 to Ivy Zelman).
Not necessarily. The way the banks roll them into the system the rate will stay fairly constant. Even if they reclaimed all the available inventory they’d still sell them off at a rate to keep prices as artificially high as possible.
No and neither are the legal foreclosure ads in the classified section of your local paper and mine. Figments of our imagination.
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