Posted by 101livescan on 8/4/09 9:00am Msg #298617
Dismal lResults for Hope for Homeowners by Lenders
http://news.yahoo.com/s/ap/20090804/ap_on_re_us/us_mortgage_help
Yet, many banks are back making huge profits again. Still foreclosures are increasing, I'm getting four new postings a day, ramping up after Gov Schwarzenegger's moratorium expires on August 27!
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Reply by Carole Breckbill on 8/4/09 10:10am Msg #298634
I've read and heard that it's more profitable for banks to take back homes in foreclosure. I still don't understand why. Back in the stone age when I was in banking, the last thing a bank/S&L wanted was a foreclosed home to unload.
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Reply by 101livescan on 8/4/09 10:44am Msg #298639
I've had distressed homeowners say that this is what workout staff at banks have told them, they'd rather repossess the house than do a workout, too much work! Callousnous of this business is mind boggling.
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Reply by MW/VA on 8/4/09 10:49am Msg #298640
Can't that be reported to the state because of the program or the banking commission. I've been wondering why we haven't seem more of the rescue loan mods we heard so much about?
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Reply by JanetK_CA on 8/4/09 4:51pm Msg #298672
I think part of it (at least in my part of the country) is that too many people simply don't qualify, even for a modification. For one thing, they are way more underwater than 105% LTV (although I haven't kept up to see if that number has changed), many have lost jobs or their work hours have been cut back to the point where they no longer meet income qualifications, they've been struck by a health -- or other -- crisis, or they just irresponsibly stretched themselves financially and are beyond rescue. I'm sure it's very hard to know what percentage belongs where.
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Reply by Joan Bergstrom on 8/4/09 11:03pm Msg #298717
I agree with Janet
In the Inland Empire CA there are so many home owners who are upside down that the loan modification programs don't work very well here.
We have the 2nd highest unemployment rate in the country at 13.4%
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Reply by PA_Notary_II on 8/4/09 7:03pm Msg #298692
How about a deed in lieu of foreclosure?
I can't see why a bank wouldn't accept this. It would save the bank a lot of money in foreclosure/legal expense and the borrowers would not have a foreclosure on their credit record. The bank would also be able to short sell the RE in much less time. Seems like a win/win on both sides.
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Reply by CF on 8/4/09 7:19pm Msg #298694
Re: How about a deed in lieu of foreclosure?
Deed in lieu of foreclosure is just as bad on your credit as a foreclosure. The amount that was the property was short sale on will still need to be filed off a borrower as a bankruptcy or it will never go away. With the new bankruptcy laws they will probably have to go in to repayment on that amount. Well maybe not b/c there are no jobs for people to get to replace their income with.
There is nothing to help the people!!!!! It is all a bunch of BS...the people that need it the most are still being screwed.
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Reply by Lee/AR on 8/4/09 8:26pm Msg #298703
From what I'm seeing...agree w/CF
Seeing a whole bunch of old CW loans being modified by BofA to a lower interest rate for people who weren't having any trouble making the payment at whatever their old rate was. Haven't yet seen an ARM go to a Fixed. Seems like they're cherry-picking.
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Reply by John Schenk on 8/4/09 10:49pm Msg #298716
Re: How about a deed in lieu of foreclosure?
How about a Chapter 13 bankruptcy? Sure beats losing your home and everything else. Folks should always explore that potential avenue before giving a deed in lieu, in my lay opinion.
In this day and time, banks will often accept deeds in lieu of foreclosure, and in some instances without hitting the borrower for the loss on the loan. If someone is going into Chapter 7, that may be the favorable approach, but a lot of factors come into play regarding all the other financial obligations. Even in a Chapter 7 it doesn't necessarily mean you have to lose your house. BK attorneys often work out more favorable loan terms for their clients.
All in my lay opinion and all that stuff.
JJ
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