Suppose I lost my job and called the mortgage company.

[mortimer]

Originally Posted by Modification Specialist

Most people ...looking to save their home from foreclosure, because they
cannot afford the payments. If they have a low interest rate already,
and on time payments. There is no hardship shown so the Lender
will do nothing to lower the payment.

Aren't there people coming to you who are raiding their 401k's, have
a 6-7% rate ( not bad, but ... ) and would simply like a "market rate,"
but aren't getting it because of underemployment, unemployment or
under water situations.

There must be 30% or more of the mortgages out there in that situation.
It's not like the banks are even making money on these loans. They've
been sold and they are only servicing them. ... Madness abounds ...

[Modification Specialist]

Originally Posted by mortimer

Aren't there people coming to you who are raiding their 401k's, have a 6-7% rate ( not bad, but ... ) and would simply like a "market rate," but aren't getting it because of underemployment, unemployment or under water situations.

There must be 30% or more of the mortgages out there in that situation.
It's not like the banks are even making money on these loans. They've
been sold and they are only servicing them. ... Madness abounds ...

Every case is different - can write a book, what I have seen in the last decade working in mortgages.

Read an article in the Wall Street Journal this morning, out of the 3,000 plus banks making a profit, 882 failed last year. Is our economy improving??? In college was taugh the mortgage industry is the bell-weather to our economy. All the talks about Libya and the fuel prices. I find it hard to believe what we pay at the pump is less than 1 percent of that comes from Libya. I think fuel is going to be our bell-weather - we need fuel to survive....lol.. another story for post in a different section of our forum...

As far as seeing 401k's, savings accounts, etc.. - most of the clients I have spoken with have a less than a month in reserves.

I approved a case from New Jersey last week - the Lender was refusing to talk with them and was going foreward with the foreclosure. 20 months behind on their mortgage, had $36,000 in their checking account. Their pay stubs only show $120.00 per week income. The Mr teaches ice staking at $90 per hour.

If I see a person has "cash", I will tell them if the bank see's that, it can have an impact on the final modification. In other words - your have to paint the worst picture of yourself to show in a hardship, but good enough to qualify.

What I do believe in the future - as value returns, foreclosures will be harder to stop and modifications will be less forgiving, because the cards will be in the Lenders favor. Right now if a person is under water in value, the cards are in the borrowers favor...

[mortimer]

Originally Posted by Modification Specialist

I find it hard to believe what we pay at the pump
is less than 1 percent of that comes from Libya.

It doesn't matter if it's 1% or 60% - like Italy.

Once the other customers start looking to buy elsewhere, they will
be willing to bid up the price from Canada, Mexico, whatever ...

Think of it like a big swimming pool with hoses going in from suppliers
and hoses going out to customers. Once the hose is in the pool,
everyone gets effected just about the same.

Originally Posted by Modification Specialist

What I do believe in the future - as value returns, ...

I'm glad you are an optimist. Optimists tend to have better mental health.
As you probably know, I'm a rabid pessimist.

Suppose in the future - as value deteriorates further ... what are your
scenarios then? ... Foreclosures, modifications, short sales ... just curious.
Let's say we go from about 25% of mortgages under water to 35-40%???

What if the Muslim revolutions spread to Saudi Arabia - I'd love it! We'd be looking at
$10/gallon gasoline though. Most "experts" I'm seeing interviewed are saying $5/gallon
is going to send us into the dreaded "double-dip." I tend to agree because I don't
believe there is a "recovery" anyway. If that happens, and I think that's getting priced
in to the market now, it's not impossible for 50% of mortgages to go under water.

If you have been reading the WSJ, I suppose that you know that, at least,
one of the Fed governors is looking to break up the big banks and separate
out their "non-banking" functions. That adds a whole additional angle.