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They just want our house.

That's because if this guy is right they are going to make a profit by flipping your house, so they really want to foreclose not come to some agreement with you.

different-direction-foreclosure-mess

Assume there is a home that has a $250,000 mortgage and the loan is in default. Now assume that the owner of that mortgage wants to sell it. Assume further that the mortgage is bundled up with a bunch of other busted mortgages and sold at a deep discount from par. Say the price of the loan package is 40 cents on the dollar. Now finally assume that the property can be sold at an auction level price of $175,000.

If you add up all my assumptions you get a situation where the mortgage is purchased for $100k (250*.4) and the actual value of the assets securing the mortgage is worth $175k. That 75k for a “flip” is big money if there is a lot of them to be done.

Man, I never thought about that. There are tens of billions available to be squeezed out of the housing market by the Goldman Sachs types out there.

The only problem they've got is if no one can get a clear title on the foreclosed property then it is worthless at auction.