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Old 03-26-2011, 07:05 PM
 
Location: Now in SP, hopefully for a very long time
249 posts, read 440,676 times
Reputation: 103

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Oh great!!! . That's good news, you cheer me up tonight, I needed it .

But at least you are in trial, I am.... nowhere, the lawyer supposedly sent the demand to the "other" insurance 2 months ago (I got a copy but did he send it?), they have 30 days to give an offer, I have nothing. He is never available if I call, and doesn't answer my emails. He knows that I have to leave the country at some time, so.... .
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Old 03-26-2011, 11:44 PM
 
147 posts, read 354,604 times
Reputation: 82
Here's my take on this situation. In a recent St Pete Times story a homeowner took out a second mortgage (probably an adjustable) thinking that he could pay it off but it didn't work out that way. He keeps paying the mortgage and asks the bank to renegotiate the loan or asks for a short sale and to be off the hook for the outstanding balance. The bank only "services" the mortgage (meaning they really don't own the paper) for two types of investors with competing financial interests. If the homeowner defaults then the bank "server" has to pay the investors the amount specified in their contract but if the house is sold the second "unsecured" investor doesn't get a dime from the sale. It is in his best interest not to allow a short sale. So after a while the homeowner doesn't hear from the bank about any type of loan forgiveness so he stops paying only then does the bank start to negotiate new terms. Maybe by that time the homeowner, who has been living in the house "for free" has saved up enough cash or got a second job that will allow him to stay in the house without foreclosure. However it seems that way too many people, especially investors, purchased homes thinking either (a) the value of the home would stay the same or increase (which it did not) or (b) they would always have that construction job and pay off the house (needless to say that industry is presently in the tank in Florida).
So do we blame the homeowner for playing the system? The only person he is hurting is himself. If he defaults the bank or investor is liable for the taxes. Furthermore most of these homes were artificially overpriced to begin with so I see this as a form of "market correction". Personally I don't see why anyone would buy a home as a "short sale" because if the property is foreclosed the bank will lower the price even more.
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Old 04-07-2011, 10:28 AM
 
1,106 posts, read 2,283,237 times
Reputation: 962
Quote:
Originally Posted by Foreclosure-fighter View Post
People were under the imppression they could afford these houses at the time of purchase because everything was going good. The banks knew these same people would not be able to keep these home when they approved them for a mortgage. Why did sub-prime companies do most of the mortgages and then went out of business. It was designed that way. The big 6 banks created the sub- prime companies and put people in theses houses the bank knew they would not be able to afford later.
I think your tinfoil hat is on a little too tight.
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