"Housing price declines increase strategic default risk"

"Home prices are expected to drop another 20% before hitting bottom, according to economists at A. Gary Shilling & Co., raising the risk that 40% of borrowers will walk away from their home in a strategic default."

Homeowners have the RIGHT to not make payments on their home and the banks have the RIGHT to take the home back in that case.

If it takes the Banks 1 year to kick the homeowners out of the house, who's fault is that????

If it takes the Banks 1 year to kick the homeowners out of the house, who's fault is that????

My educated guess is that the banks are as often to blame as the homeowners for the delay in foreclosing, they don't want to take on the burden of taxes and maintenance, or often they are discombobulated by the volume of defaults in their organizations and that of the servicers. But that's only a guess. What think you?

I think a good portion of the global economy is resting on the subprime mortgage derivative market. The Banksters NEED subprime borrowers to pay their 10-11% interest on a 30 year mortgage so they can, one way or the other, bundle them all up into billion dollar investment packages that they can sell to investors who are looking to beat the dismal money market/CD rates. There’s all this money out there supposedly to refinance mortgages but, from what I have seen, the banks seem quite hesitant to refinance those sub-prime mortgages with ridiculous interest rates. I own a 2006 corvette that’s paid for, a 2004 dodge ram 4x4 that’s paid for as well and a 2000 chevy blazer that’s also paid for. I also have about $90,000 in equity on a $130,000 house. I have about $7,000 in cash and another $15-$20,000 in easily liquefied assets. I also have a college degree and made $60,000 this year. The bank considers me “risky” and won’t give me anywhere near the prime rate because my FICO score isn’t perfect. They won’t let my girlfriend refinance either citing some straight up BS on her her credit report. That’s what think I.

It’s like getting your hand called. The banks don’t have the cards and have been bluffing.

The longer they can put off having to show the better they are, can’t foreclose on what you no longer own.

Definitely something weird going on. Our co-borrower stopped paying on our loan and we were basically forced into a foreclosure situation, as we could not afford the payment on our own. We stopped paying our mortgage August of 2009. The foreclosure sale date was initially set for September 2010. It has been moved at least 5 times and is now set for February 2011. I won’t be surprised if they move it again. It’s all very strange...

Well I’d check to ensure that the lender actually has the deed, and can produce the required documentation. I’m not saying that your lender has defrauded you, just as Reagan said, trust, but verify.

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