[forclosure]

I am new here. I am still learning....sorry

[TPCINC]

I agree with your Proposal. I am in the same boat with two NV properties that I purchased with a conservative 65% LtoV or higher and that are now underwater and at risk of HOA foreclosure, even though I forego any other investment opportunities to make the monthly mortgage payments.

I hope your timeline is over estimated for recovery, but regardless, the banks caused the mess around me and dragged me into it, they were bailed out and now people like you and I are holding the bag!

Originally Posted by forclosure

Forclosure is not the solution. We all should present the following to our senator to help us homeowner:

1. Banks should lower fixed mortgage rate of 3% across the board to all home owners, for a term of 10 years, amortize over 30 years.
2. After modified the existing mortgage, homeowner still not able to make the payment, then forclose or short sale are the options

The following are my reasoning:
3% interest rate is still higher than saving rate banks are offering to the public. They are still making a positive income.

10 years term with 30 years amortization. I don't believe our econonmy will turn around within the next 10 years. The peak of real estate is 2006 and 2007. 3 years ARM loans are due 2010. 5 years ARM loans are due 2012. 7 years ARM loans are due 2014. Four years from now will end most of our ARM loans at real estate peak. I believe it will take at least 6 years from 2014 or if we are lucky sooner for our real estate market to get better. At which time, people at one time have their house forclosed on or short sale, have rebuild their credit and save enough money to become a home owner again.

By bank lower the interest rate, banks will have less forclosure properties. Bank also benefit from this, because lesser th forclosure, lesser the reserveon their depsit requirement, FDIC inpose on all banks.

Home owner like me, who care for her credit and continue to pay on an up side down property, I should be rewarded on this down real estate market. I am sure I am not the one share the same view of this UNFAIRNESS. Why others walk away from their properties and all debts go away? And me can even get the bank to do my loan modification, because my tax return show negative income? And I still pay the bank with my negative income. I am either stupid or our system is just plain NOT FAIR.

[airics]

one thing you are missing.. some of the arms reset based on the LIBOR.. mine did... I bought in 2006.. interest rate 5 7/8ths.. mine reset last month for a year... new rate 3%....

[JonathanLB]

Originally Posted by forclosure

Home owner like me, who care for her credit and continue to pay on an up side down property, I should be rewarded on this down real estate market. I am sure I am not the one share the same view of this UNFAIRNESS. Why others walk away from their properties and all debts go away? And me can even get the bank to do my loan modification, because my tax return show negative income? And I still pay the bank with my negative income. I am either stupid or our system is just plain NOT FAIR.

You should perhaps look into that mortgage again with certain specialized divisions. I had the same issue because my tax return is often going to be negative but that doesn't mean I don't have any money or assets to pay with. I was still able to refinance despite that by showing them my investments and various cash flow. I dont know your situation of course but I'm just saying, I had trouble at first with two guys, then finally found the right options.

[Kleptocracy]

Originally Posted by airics

let it go to foreclosure... if house is foreclosed upon, i believe that the 2nd is null...however i am not an attorney so take it with a grain of salt

I appreciate everyone's advice on this issue. We have actually left the state--due to work opportunities and intend to let the property fall into foreclosure.

However, it has been a year and the bank has yet to move forward on the foreclosure. Additionally, I ran a credit check and apparently they wrote off the balance of the HELOC from their books--I fully expect collections to come calling in the future. If they do not, the debt is slated to no longer be included on our credit report come 2017.

Thanks again!

[Fighter 1]

Originally Posted by Kleptocracy

I appreciate everyone's advice on this issue. We have actually left the state--due to work opportunities and intend to let the property fall into foreclosure.

However, it has been a year and the bank has yet to move forward on the foreclosure. Additionally, I ran a credit check and apparently they wrote off the balance of the HELOC from their books--I fully expect collections to come calling in the future. If they do not, the debt is slated to no longer be included on our credit report come 2017.

Thanks again!

One additional thought is that if they do come after you make them show their authority to take an action against you. By that I mean now they have to show who owns the mortgage!. Most banks have sold the paper and are only the collection agency for that new owner, so if the paper work states they are the owner , that is false and it will stop their action in court.

[airics]

Originally Posted by Kleptocracy

I appreciate everyone's advice on this issue. We have actually left the state--due to work opportunities and intend to let the property fall into foreclosure.

However, it has been a year and the bank has yet to move forward on the foreclosure. Additionally, I ran a credit check and apparently they wrote off the balance of the HELOC from their books--I fully expect collections to come calling in the future. If they do not, the debt is slated to no longer be included on our credit report come 2017.

Thanks again!

the collection agency is the one thats going to sue.. plus they will sell it over and over again

[Fighter 1]

Originally Posted by airics

the collection agency is the one thats going to sue.. plus they will sell it over and over again

Doesn't matter how many times they sell it ,if the first didn't have ownership then all the others are invalid and the court when challenged will dismiss because as the courts call it " You do not have standing in the matter, No valid contract for the court to act on . Yep as simple as that . I have see it happen that way in several actions I have helped people with . Got to love the laws.

[olecapt]

Originally Posted by Fighter 1

Doesn't matter how many times they sell it ,if the first didn't have ownership then all the others are invalid and the court when challenged will dismiss because as the courts call it " You do not have standing in the matter, No valid contract for the court to act on . Yep as simple as that . I have see it happen that way in several actions I have helped people with . Got to love the laws.

I don't think you understand how this works. If a mortgage is foreclosed the second and HELOC don't go away...the simply become unsecured. You don't need to provide any proof of mortgage on an unsecured loan. Merely that they signed the contract to pay it back .

So this sort of loan goes on for a long time. You have to go bankrupt to be rid of them...which many people should do if they get foreclosed.

[Fighter 1]

Originally Posted by olecapt

I don't think you understand how this works. If a mortgage is foreclosed the second and HELOC don't go away...the simply become unsecured. You don't need to provide any proof of mortgage on an unsecured loan. Merely that they signed the contract to pay it back .

So this sort of loan goes on for a long time. You have to go bankrupt to be rid of them...which many people should do if they get foreclosed.

Might be true "IF" they as I stated still own the loan . problem is that as things were taking a dump ( so to speak ) many of the loan docks were sold on the open investment market , to which I go back to my first statement, Prove you own the rights to the loan.