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Old 04-14-2011, 06:48 AM
 
3,599 posts, read 6,783,818 times
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Foreclosures continue to trend down in first quarter 2011 - Yahoo! Finance (http://finance.yahoo.com/news/Foreclosures-continue-to-cnnm-3667179016.html?x=0&sec=topStories&pos=1&asset=&cc ode= - broken link)

"In New York and New Jersey, according to Sharga, it's more than 800 days now between when a typical delinquent borrower first receives a notice of default to when the home goes to a sheriff's sale"

Yep, I am sure there the "common public" will eventually figure it out. I know my cousin in S. Florida finally figured it out and stopped paying her mortgage (although she did actually put 20% down on her home in 2007). She up to 24 months with no payments. And she says her friends went 3 1/2 years. No wonder why the malls in S. Florida are packed. People are still spending money...except they aren't spending it on their homes.

But for those severely underwater and living in judicial foreclosure states, the courts are getting slammed and back logged in these foreclosure states.

Just imagine not paying a $2000-4000 mortgage note for 3 years. Just imagine not paying rents for 3 years. You literally are "saving" up to $100K in housing.
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Old 04-15-2011, 08:00 AM
 
7,214 posts, read 9,393,969 times
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Yep, a lot of people are just strategically deciding to not pay their mortgages anymore. Hard to feel sorry for the banks that gave out some of these irresponsible loans, though.
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Old 04-15-2011, 08:46 AM
 
Location: Salem, OR
15,577 posts, read 40,434,848 times
Reputation: 17473
Quote:
Originally Posted by aneftp View Post
Foreclosures continue to trend down in first quarter 2011 - Yahoo! Finance (http://finance.yahoo.com/news/Foreclosures-continue-to-cnnm-3667179016.html?x=0&sec=topStories&pos=1&asset=&cc ode= - broken link)

"In New York and New Jersey, according to Sharga, it's more than 800 days now between when a typical delinquent borrower first receives a notice of default to when the home goes to a sheriff's sale"

Yep, I am sure there the "common public" will eventually figure it out. I know my cousin in S. Florida finally figured it out and stopped paying her mortgage (although she did actually put 20% down on her home in 2007). She up to 24 months with no payments. And she says her friends went 3 1/2 years. No wonder why the malls in S. Florida are packed. People are still spending money...except they aren't spending it on their homes.

But for those severely underwater and living in judicial foreclosure states, the courts are getting slammed and back logged in these foreclosure states.

Just imagine not paying a $2000-4000 mortgage note for 3 years. Just imagine not paying rents for 3 years. You literally are "saving" up to $100K in housing.
I think people see it as a way to recoup some of their lost down payment money.
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Old 04-15-2011, 01:55 PM
 
Location: New York
2,251 posts, read 4,915,939 times
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I am in New York..... Who ever wrote "foreclosure now up to 800 days" is is trying to spark a flame, is trying to generate attention... The average is much less!!!!! Here in New York seeing 12 to 18 months average..

Every case is different, for one to say a few cases affect many simply is not the case!!! In the last four years only seen a few foreclosure cases over 24 months. One was 60 months that involved a chapter 13 bankruptcy discharge. Myself and others in our office speak to home owners and attorneys in 49 states. Living in judicial states, being underwater owing more than the value of the property. Being late and deciding to not pay the mortgage anymore. This is called a strategic default.

In considering a strategic default - Banks are somewhat predictable - if it is going to cost them more, lenders are doing to chose one way. If it is going to cost them less, lenders are going to do it another way...

If a person is under water - owing more than what the value is, the cards are suited towards the borrower. On the other hand - if the home owner has equity, owing less than the value. The cards are better suited towards the lender.

Homeowners planning on doing a strategic default themselves, find it impossible because the is an existing relationship with the loan. This is the secret why approved 3rd party's can negotiate at a higher level, because no connection to the loan.

.
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Old 04-15-2011, 02:26 PM
 
Location: Union County
6,151 posts, read 10,029,147 times
Reputation: 5831
Quote:
Originally Posted by Modification Specialist View Post
I am in New York..... Who ever wrote "foreclosure now up to 800 days" is is trying to spark a flame, is trying to generate attention... The average is much less!!!!! Here in New York seeing 12 to 18 months average..

Every case is different, for one to say a few cases affect many simply is not the case!!! In the last four years only seen a few foreclosure cases over 24 months. One was 60 months that involved a chapter 13 bankruptcy discharge. Myself and others in our office speak to home owners and attorneys in 49 states. Living in judicial states, being underwater owing more than the value of the property. Being late and deciding to not pay the mortgage anymore. This is called a strategic default.

In considering a strategic default - Banks are somewhat predictable - if it is going to cost them more, lenders are doing to chose one way. If it is going to cost them less, lenders are going to do it another way...

If a person is under water - owing more than what the value is, the cards are suited towards the borrower. On the other hand - if the home owner has equity, owing less than the value. The cards are better suited towards the lender.

Homeowners planning on doing a strategic default themselves, find it impossible because the is an existing relationship with the loan. This is the secret why approved 3rd party's can negotiate at a higher level, because no connection to the loan.

.
A reference beyond anecdotal evidence would be great because I don't understand what visibility you have into the entire process.. I've seen several articles highlighting NY as one of the worst states from a debtors NOD to final eviction - estimates of 400, 500, 600 and now this article at 800 days. This doesn't even include how long it's taking from 1st 30day delinquency until a NOD. So all told, it can easily be 2 to 3 years without a mortgage payment before you're booted out.

The good news is that these stupid debtors aren't saving the money and just pumping the free mortgage cash back into the system buying iPads and such. To the tune of $50B a year I think I read... Seems like the vast majority aren't smart deadbeats. lol
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Old 04-15-2011, 06:29 PM
 
3,599 posts, read 6,783,818 times
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Quote:
Originally Posted by MikeyKid View Post
A reference beyond anecdotal evidence would be great because I don't understand what visibility you have into the entire process.. I've seen several articles highlighting NY as one of the worst states from a debtors NOD to final eviction - estimates of 400, 500, 600 and now this article at 800 days. This doesn't even include how long it's taking from 1st 30day delinquency until a NOD. So all told, it can easily be 2 to 3 years without a mortgage payment before you're booted out.

The good news is that these stupid debtors aren't saving the money and just pumping the free mortgage cash back into the system buying iPads and such. To the tune of $50B a year I think I read... Seems like the vast majority aren't smart deadbeats. lol
Speaking of iPads and stupid things people buy. My cousin in S. Florida brought 2 iPads for both her 3 year old twins. Yes 3 years old! She just got back from a cruise. Going on 24 months without paying her mortgage. The courts are so backed up in S. Florida, her attorney says she's got another 12 months in the house, maybe even longer if they threaten bankruptcy (that buys them another 6 months).

I talked to my cousin today and told her she needed to say money on the mortgage she wasn't paying. She says they can't help themselves. They know they are acting irresponsible but just can't stop.

Sadly, the majority of these defaulters like my cousin don't save any money. My cousin is lucky because the bank of mom and (aka her affluent doctor father and pharmacist mother) will bail them out. They already offered to buy a distress property next to my cousins home for them. But my cousin tells them not to because they know prices are still declining. But others will not be lucky to have mom and dad bail them out.
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Old 04-18-2011, 05:13 AM
 
Location: Albuquerque
1,899 posts, read 3,508,887 times
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Shouldn't these people save money since their credit rating is gone and they'll have to pay cash for everything?
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Old 04-18-2011, 10:17 AM
 
Location: Pomona
1,955 posts, read 10,982,832 times
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Quote:
Originally Posted by Rich Cabeza View Post
Shouldn't these people save money since their credit rating is gone and they'll have to pay cash for everything?
If they were wise with the money in the first place, they probably wouldn't have gotten into this mess.

I worked part time in an RE office during the boom. On several occasions, I was asked if I wanted to buy a house ... "You don't need to qualify - the banks will lend on anything!" My response was "It's not the payments now, but the payments later that I care about." There were loan programs touting 125% LTVs and 1/2% negative amortization payment options ... programs that puts a buyer underwater since day one.

Not everyone had the same line of thinking as me ... the worst case was one individual who did three cash-out refinances in a year. Bought an Escalade and a H2.

For all those ranting about how the government spending is creating an artificial economy ... well, allowing for the deregulation of the banks, which in turn created the housing bubble of the past decade, is what started this artificial economy.
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Old 04-18-2011, 06:04 PM
 
3,599 posts, read 6,783,818 times
Reputation: 1461
Quote:
Originally Posted by Rich Cabeza View Post
Shouldn't these people save money since their credit rating is gone and they'll have to pay cash for everything?
Yes, my cousin down in south florida is one of those defaulters. They've gone on 3 cruises, brought a mini-van, ipads, iphones, 2 trips to vegas. You name it.
I told them they are being irresponsible. The issue is that my cousin knows she will be bailed out (she's 35 years old) by the bank of mom and dad who are very affluent.

Their credit cards are about maxed out. My aunt (her mom) felt bad and gave her another credit card so she could by food/gas for their 3 young kids. My cousin charged up $3K in one month...lets just say $3K was not all for food and gasoline. My cousin charged other misc items on the card. My aunt was furious but it's her daughter and she's just enabling them by bailing them out each time.
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Old 04-18-2011, 07:43 PM
 
2,059 posts, read 5,748,544 times
Reputation: 1685
If you can look yourself in the mirror each morning knowing you are stealing every single day you don't pay your mortgage, then that's your choice. I can pretty much guarantee that your cousin doesn't have a penny in college savings for either of those kids, in fact it wouldn't surprise me if you said she doesn't even have health insurance for them. It's going to be interesting to see what she'll do when her parents are gone, she's spent the inheritance (if there's any left to leave) and her 35 year old twins are still living at home jobless and broke.

Btw if you're wondering who strategic defaulters are stealing from, it's us. All of us.
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