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I have been following your posts for about 6 months now. I feel for you. Much of this country, not all of it is suffering from a deep recession never seen ever before. A few cities I would clasify as a DEpression.
All my life I heard that banks dont want to take the house in foreclosure. They do not want to be in the Real Estate business. I say hogwash. If that is true then why are these lenders preferring to foreclose rather then work with the homeowner. Does anyone realize how many people want to keep their homes? They are usually duel income families and never missed any payments in their life.
Now inject all the job losses and the interest rates jumping up. The lenders are flat out refusing to modify the loans so these people can stay in their homes. They are all playing hard ball and are losing by their bully tactics. Their only revenge is to ding the borrowers credit. This seems to be the preferred method of all the mortgage companies.
Im not for any bail outs either. But why cant your govt force these banks to modify loans rather then foreclosing? How hard is that?
You all ain't seen nothing yet. The worst is still yet to come. Where I am, 1 out of every 27 homes are in foreclosure. It doesn't have to be that way.
Shame on the banks. I have no sympathy for them. How many banks have closed their doors forever this year? 7 right? 4 more then all of last year so far. I hope they all go under.
Banks do not want to own homes.
Most of the foreclosures are not duel income earners who have never missed a payment in their lives.
If the borrower cannot afford the home now, what makes you so sure they can afford the payments with some loan modification? Where do you draw the lines with the 'modifications'?? Everyone will want a 'modification'.
If you loaned someone $100k would you want the gov't to "force you" to accept $80K as repayment because for some reason your borrower can't come up with the whole $100k??
I see you are in Vegas. You really think the foreclosure crisis there is due to duel income earners that have never missed a payment?? If so than you are extremely naive and/or misinformed.
7 out of how many banks went under? Sorry, but the 'big bad banks' are here to stay.
Most of the foreclosures are not duel income earners who have never missed a payment in their lives.
If the borrower cannot afford the home now, what makes you so sure they can afford the payments with some loan modification? Where do you draw the lines with the 'modifications'?? Everyone will want a 'modification'.
If you loaned someone $100k would you want the gov't to "force you" to accept $80K as repayment because for some reason your borrower can't come up with the whole $100k??
I see you are in Vegas. You really think the foreclosure crisis there is due to duel income earners that have never missed a payment?? If so than you are extremely naive and/or misinformed.
7 out of how many banks went under? Sorry, but the 'big bad banks' are here to stay.
Tim.. I understand whta you are saying.. but if you've followed my post you'd know why she posted what she did.
first.. I never missed apayment in the 2 years I had the fixed payment at a 6.95% interest rate. The modification I was seeking was NOT to the principal.. but to the interest rate.. to lock it at the 6.95, which at the time I was asking it was still above the best interest rates offered to borrowers with "higher"credit..
aNd theproblem then at that time was NOT myscore.. my score was pretty good by that point. It wasn't even that bad to begin with when I first purchased the home. My problem was that I didnt' have any current open lines of credit because 10 years earlier I had sworn off cards after paying all mine off in my early 20's that I got whenI was 18 and went nuts with. Who would have known that not extending myself with credit cards was a negative thing!! I didn't.
But that's all water under thebridge. The modifications that you are referring to are those that are put forth in the new bill just passed.. and it's voluntary. I never asked to modify the actual principal.. just the interest.. which is suppsed to be profit on the initial owed.
And juts to add.. that the subprime crisis has now started affecting Alt A Loans (like myself) and even Prime mortgages are defaulting at alarming numbers. Alt-A are people with okay credit, not bad and of course primes are those with good credit.
Last edited by TristansMommy; 08-12-2008 at 01:34 PM..
Most of the foreclosures are not duel income earners who have never missed a payment in their lives.
If the borrower cannot afford the home now, what makes you so sure they can afford the payments with some loan modification? Where do you draw the lines with the 'modifications'?? Everyone will want a 'modification'.
If you loaned someone $100k would you want the gov't to "force you" to accept $80K as repayment because for some reason your borrower can't come up with the whole $100k??
I see you are in Vegas. You really think the foreclosure crisis there is due to duel income earners that have never missed a payment?? If so than you are extremely naive and/or misinformed.
7 out of how many banks went under? Sorry, but the 'big bad banks' are here to stay.
I believe banks DO want to own the homes. If not then why do ALL, not a few or some...ALL the banks flat out refuse to work something out with the borrower? Yes in many cases we are talking about working families who got one of those stupid teaser loans and their payment went from $1000/m to $1900/m. Shame on the borrower or the lender for that? I say shame on the lender since they are supposed to be the ones with the smarts to determine if a borrower is good for it or not.
I am certian many of these foreclosures are from families who are and continue to have a job. This is based on the monthly numbers lenders publish showing the amount of first time 30 day lates. But we do indeed have many who are and were always late. They got loans called liar loans. For that none of us have any sympathy for any involved
.
Im not sure your getting my point. Do you know how much it cost a lender to foreclose? It is far far far more expensive then to put a couple/few payments on the back end of the loan or NOT let the interest rise to a point of guarenteed destruction or just restructure the monthly payment a bit. Your wondering where do they draw the line? I dont know but that ain't my/our problem. Whatever the answer I feel it will have to be on a case by case basis. And for that to happen the lenders, who have already layed off their staff in masses, do not have the man power to handle this crises.
I have never met anyone in my life who had anything good to say about a bank. Until you. Are you a banker? Even bankers hate their jobs and what their companies stand for. Dont give them any credit. They hate you and they hate me with every cell in their corporate bodies. We are just revenue to them. Not customers.
Tim.. I understand whta you are saying.. but if you've followed my post you'd know why she posted what she did.
first.. I never missed apayment in the 2 years I had the fixed payment at a 6.95% interest rate. The modification I was seeking was NOT to the principal.. but to the interest rate.. to lock it at the 6.95, which at the time I was asking it was still above the best interest rates offered to borrowers with "higher"credit..
aNd theproblem then at that time was NOT myscore.. my score was pretty good by that point. It wasn't even that bad to begin with when I first purchased the home. My problem was that I didnt' have any current open lines of credit because 10 years earlier I had sworn off cards after paying all mine off in my early 20's that I got whenI was 18 and went nuts with. Who would have known that not extending myself with credit cards was a negative thing!! I didn't.
But that's all water under thebridge. The modifications that you are referring to are those that are put forth in the new bill just passed.. and it's voluntary. I never asked to modify the actual principal.. just the interest.. which is suppsed to be profit on the initial owed.
And juts to add.. that the subprime crisis has now started affecting Alt A Loans (like myself) and even Prime mortgages are defaulting at alarming numbers. Alt-A are people with okay credit, not bad and of course primes are those with good credit.
I do feel for you, but even you (if I remember your posts correctly) do not put 100% of the blame on the lenders.
With your case it sounds like common sense would say that your lender should at least look at a rate modification. Who knows how a mega lender/servicer thinks?? I know if you were at my small community bank we would definitely be trying to work with you. Although there is a very good chance that we would not have granted the loan in the first place as we are very conservative real estate lenders for our portfolio loans.
I do feel for you, but even you (if I remember your posts correctly) do not put 100% of the blame on the lenders.
With your case it sounds like common sense would say that your lender should at least look at a rate modification. Who knows how a mega lender/servicer thinks?? I know if you were at my small community bank we would definitely be trying to work with you. Although there is a very good chance that we would not have granted the loan in the first place as we are very conservative real estate lenders for our portfolio loans.
Well unfortunately my mortgage is owned by wall street investors..
Loan mod is out of the question now. .and it's fine. I'mlossing money.. but do I really want to keep paying for a house that is now worth $120K less than it was when I bought it? Probably not..
But NOW I'm having a problem with the short sale.. lets just say that I now know why the banks are loosing a ton of money.. and probably more than they have to.. because I'm not financial geniuos (obviously) or business guru.. but their decisions are illogical, stupid .. I could go on. Even the servicer is scratching their head and going to bat for me with their client. .because it's just stupid dumb business at this point.
And.. probably you're bank would have offered me a fixed rate slightly higher than my initial. An option I wasn't offered and based on some peoples post probably becuaes they made more money off this ARM one then they would have a fixed.
I have never met anyone in my life who had anything good to say about a bank. Until you. Are you a banker? Even bankers hate their jobs and what their companies stand for. Dont give them any credit. They hate you and they hate me with every cell in their corporate bodies. We are just revenue to them. Not customers.
I am a mortgage lender turned banker.
We have loads of customers that LOVE our bank. We are one of the most successful banks in MN, and the country for that matter (based on our assets).
I like my job and love the company I work for. It has been family owned since 1933. We are the opposite of corporate banking (no titles...neither customers nor employees are 'just a number').
We are "old school" where one of our "C"s is Character as opposed to just Credit, Collateral, Capacity & Cash. We do most of our lending without pulling credit. We do not report to the bureaus either. I have had full approval decisions in under 5 minutes on residential deals as high as $800k.
We get lots of good customers from the corporate banks where they get the runaround (just closed a deal like that today). It sounds to me like you need to find a small community bank out there and move all your accounts and business. You won't find their ATMs on every corner (we don't even have ATMs in any of our 5 branches!) and they may not have the absolute latest and greatest as far as technology but your experience will be a lot more pleasant.
Just a little different than you describe I would have to say.
Last edited by TimtheGuy; 08-12-2008 at 03:28 PM..
We have loads of customers that LOVE our bank. We are one of the most successful banks in MN, and the country for that matter (based on our assets).
I like my job and love the company I work for. It has been family owned since 1933. We are the opposite of corporate banking (no titles...neither customers nor employees are 'just a number').
We are "old school" where one of our "C"s is Character as opposed to just Credit, Collateral, Capacity & Cash. We do most of our lending without pulling credit. We do not report to the bureaus either. I have had full approval decisions in under 5 minutes on residential deals as high as $800k.
We get lots of good customers from the corporate banks where they get the runaround (just closed a deal like that today). It sounds to me like you need to find a small community bank out there and move all your accounts and business. You won't find their ATMs on every corner (we don't even have ATMs in any of our 5 branches!) and they may not have the absolute latest and greatest as far as technology but your experience will be a lot more pleasant.
Just a little different than you describe I would have to say.
What you describe sounds awesome. Something like the old days. Remember customer service? Young people will answer no to that.
Credit Unions come close to your description of the place you work for. Unfortunatly few of us get loans from Credit Unions. I have a savings at a Credit Union with just 2 branchs but have to have a checking elsewhere because Credit Unions dont do business accounts. The way I am treated in the Credit Union and the big conglomerate bank are complete opposites. The bank treats you like a criminal and a number. The bank robots are just that....robots.
Your just in a good mood because you have those thousand beautiful lakes behind you. I like Minnesota.
Well unfortunately my mortgage is owned by wall street investors..
Loan mod is out of the question now. .and it's fine. I'mlossing money.. but do I really want to keep paying for a house that is now worth $120K less than it was when I bought it? Probably not..
But NOW I'm having a problem with the short sale.. lets just say that I now know why the banks are loosing a ton of money.. and probably more than they have to.. because I'm not financial geniuos (obviously) or business guru.. but their decisions are illogical, stupid .. I could go on. Even the servicer is scratching their head and going to bat for me with their client. .because it's just stupid dumb business at this point.
And.. probably you're bank would have offered me a fixed rate slightly higher than my initial. An option I wasn't offered and based on some peoples post probably becuaes they made more money off this ARM one then they would have a fixed.
Live and learn.
How right you are. It is just stupid that lenders dont wake up and realize that modifying a loan is better then foreclosing it at great cost to them. Your right, it makes no sense.
I dont know what the answer is. I do know that Economics 101 on the very first day of class they teach you to not throw money into a losing pit. Our homes right now are loser pits. If one can afford to stick with it, fine. If one cant - do to a horrible ARM then pee on it. Let them have it back. That seems to be what they really want.
The banks will eventually sell the property, and this time to someone who will make all the payments. The main problem I think they foresee is if they renegotiate the loan with this person, then they'll be bombarded by everyone else wanting their loan renegotiated. They may look over someone who wants there terms renegotiated and decide that it's likely that they would still end up in default down the road.
Banks do renegotiate loans occasionally, but they base it on overall profits. In the long run it just may be better to foreclose.
This housing mess has a long way to go. I don't believe we are even mid way in the crisis. In fact - I'm convinced that foreclosures are accelerating and it will take a decade to resolve this.
So I pose this question -
Regardless of consequences to morality, credit, liability, tax issues etc.-
Is there anyway to speed up the foreclosure process if you've decided that it makes no economic sense what-so-ever to continue paying for a declining asset that is worth less than 50% of the mortgaged price?
Will jingle mail work?
Can you force the issue by telling them that you've moved out, the door is open and they can just take it?
They obviously don't want it, refuse to foreclose and are uncooperative on a selling deed-in-lieu or selling short.
They are going to own it eventually so why not take it now?
Can you force the bank to foreclose?
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