Mortgage readjustment issues

[MassHavoc]

Sorry, I meant to ask earlier RK, why do foreclosures cost upto 40k? What is involved in them?

 

[R K]

Sorry, I meant to ask earlier RK, why do foreclosures cost upto 40k? What is involved in them?

Supposedly for the process, which apparently Banks were not processing properly to begin with from the start. Who knows how many people were illegally removed/foreclosed upon. They are just now finding them. In the tune of thousands. For what ever reason there are a percentage, a growing portion, of those that are complete victims of the economy.



There are all sorts of legal fees involved Mass but in more cases it's less expensive for the Banks to do the foreclosures than it is the other options you inquired about.



If it were really "Free Enterprise" the Fed would have let each and every one of these shifty fucking entities fold. But no, all we heard was "it will collapse the economy". Then let the fucking economy collapse. Instead they reward them for improper business practices.



Any individual or small-medium business's would have been allowed to FAIL. But not the big bad bank boys. No way. Bonus.

 

[nana]

This is a pretty comprehensive list of options so I will just say I wish the best for Tater, BHP, ginnie, and anyone else facing these challenges right now.

 

[jakobeast]

Good for fucking him!!! Here Here!



If for just the percentage the SYSTEM has fucked. I wonder how many of those foreclosures your working on were actually done legally. It's widely known that at least four of the largest mortgage lenders are re visiting foreclosure proceedings because far too many were done ILLEGALLY with out the proper paper work and in many cases, NOT VALID.



Good for Tom Dart!



GMAC



Bank of America



The Fed



And there are many more. IF there is 1 out of 10 wrongfully evicted from THEIR HOME, it's ONE to many.



Now you bring up property taxes. Should we really go into the SCAMS scum bags are using to steal people homes there? We can....



How they steal your home



As for the next door to my house.... HAHAHHAHAHAHAHA! Yea right! There has been a foreclosure two blocks down for about two years. Squatters, LOL!!!!

I am not disagreeing.



But Dart is not doing his job. He has also "realized" it and has said that he needs to do his job. Those were his actual words.



I find it strange that he said that a couple of days after he announced he wasn't running for mayor of Chicago. Do you find that strange at all???? Hmmmmm.



Before you start running your mouth about how these banks fucked over soooooo many people, and yes, absolutely, I agree if one person was fucked over, it is one too many, however, thats a lot of commas. No, these people haven't made a mortgage payment in over a year. Also, not all the banks were doing the robo-sigining thing. One of the reasons all the banks stopped their foreclosures and investigated it was to make sure there was nothing illegal going on. BoA was doing that, and I sincerely hope that when they are found guilty they have to pay out the wazoo. All the other banks were being proactive and investigating their process.



If anyone was evicted improperly, and that has yet to be proven btw, i really to hope that they are compensated very well.



Granted, the loans may be goofy, and shouldn't have been granted. But at one time they could afford them. My neighbor had a loan where you pay just the intrest. WTF? Thats why I gave the advice of do NOT go through a mortgage broker.



I don't like a lot of the banks out there. BoA, for example, sucks ass.



I also believe that if any bank, ANY bank, took money from the government, aka, us taxpayers, they should be made to work with those people struggling. Those underwater, and so on.





What it all boils down to is this: they can modify a loan all they want, they can lower payments to almost nothing. If a dude can't find work, how is he gonna pay his mortgage?

 

[R K]

Dart is not going to have his officers evicting those that may or may not have had the proceedings for eviction not Legal. It's just that simple.



And I 100% agree with what he's trying to accomplish. Unfortunately they don't give a shit about him or the justice he's interested in either.



FYI Dart started that last year. Long before anything about Mayor of Chicago.



And I'm sorry if they can "modify the loan they will" is 100% complete bullshit. They will ONLY modify the loan if it 100% benefits the Bank or what ever financial institution it is. There is no justification for the way they doled out money, nor is their any justification for the HUGE PROFITS they are reporting while the working man in this country gets fucked. Sure there are bad apples but there are far too many good apples that get FUCKED along the way. The financial institution doesn't give a flying ****.



Like said above by Fluffle of all people, those banks are not interested in protecting or helping ANY interest but theirs. Period.



What it all boils down to is this: they can modify a loan all they want, they can lower payments to almost nothing. If a dude can't find work, how is he gonna pay his mortgage?



They aren't. They aren't going to modify shit if it's not in their interest. They will foreclose, and apparently many illegally by all accounts on just the first few links I posted above. That's ASIDE from the shady ones buying delinquent property taxes, another completely different way of fucking honest people out of their homes.



Your neighbor had an interest ONLY loan to start. Then at some point the interest kicks in. Another giant **** up by our glorious financial institutions. And yet ANOTHER reason so many failed and or were about to Fail before the US Government played financial God in bailing them out. They were bailed out but the actual borrowers in 99% were not? Really? There's a slight problem with that.



As for running my mouth? My degrees, as in plural, allow me to run my mouth. I went to school so I can run my mouth. All three of them are hanging on the wall over there and say RUN MY FUCKING MOUTH!



And to add Jako I have not the slightest clue how to correct all the issues that were caused from both bad borrowers and bad lenders. But it is quite clear the Lenders always have the better foot on the ground. And who pays for that, all of us tax payers is who.

 

[jakobeast]

Dart is not going to have his officers evicting those that may or may not have had the proceedings for eviction not Legal. It's just that simple.



And I 100% agree with what he's trying to accomplish. Unfortunately they don't give a shit about him or the justice he's interested in either.



FYI Dart started that last year. Long before anything about Mayor of Chicago.



And I'm sorry if they can "modify the loan they will" is 100% complete bullshit. They will ONLY modify the loan if it 100% benefits the Bank or what ever financial institution it is. There is no justification for the way they doled out money, nor is their any justification for the HUGE PROFITS they are reporting while the working man in this country gets fucked. Sure there are bad apples but there are far too many good apples that get FUCKED along the way. The financial institution doesn't give a flying ****.



Like said above by Fluffle of all people, those banks are not interested in protecting or helping ANY interest but theirs. Period.



What it all boils down to is this: they can modify a loan all they want, they can lower payments to almost nothing. If a dude can't find work, how is he gonna pay his mortgage?



They aren't. They aren't going to modify shit if it's not in their interest. They will foreclose, and apparently many illegally by all accounts on just the first few links I posted above. That's ASIDE from the shady ones buying delinquent property taxes, another completely different way of fucking honest people out of their homes.



Your neighbor had an interest ONLY loan to start. Then at some point the interest kicks in. Another giant **** up by our glorious financial institutions. And yet ANOTHER reason so many failed and or were about to Fail before the US Government played financial God in bailing them out. They were bailed out but the actual borrowers in 99% were not? Really? There's a slight problem with that.



As for running my mouth? My degrees, as in plural, allow me to run my mouth. I went to school so I can run my mouth. All three of them are hanging on the wall over there and say RUN MY FUCKING MOUTH!



And to add Jako I have not the slightest clue how to correct all the issues that were caused from both bad borrowers and bad lenders. But it is quite clear the Lenders always have the better foot on the ground. And who pays for that, all of us tax payers is who.

Dart stopped evictions more then a year ago, as he was positioning himself for a possible run. I have no doubt about that. Just my opinion there.Ain't no one gonna convince me otherwise. I do agree, if someone is getting evicted illegally, then I truly hope that financial institution is torn a new one, and the higher ups that made it happen face jail time. The folks I see are usually 18 to 24 months behind in their mortgage payments. They are not just a little behind the 8 ball or just a few months behind. Most have already moved on with their life. There have actually been a couple of evictions I have done where the owner opens the door door and sees the sheriff and literally said "thank god you're here. Now I don't gotta worry about this place" and gives him the keys.



Banks have modified many a loan, but I am with you there too. They aren't modifying shit unless it benefits them. That is business. Are you telling me a business of any type should take less compensation then what was agreed too? They don't have to modify shit. Again, if they took money from the government, or the U.S. taxpayer, they should absolutely help anyone asking for it.



The minute our neighbor said he had an interest only loan back in 05, I knew he would be in big trouble. The financial institutions I think were a bit too aggressive trying to get people into houses and loaned money to folks who couldn't afford them, or give creative loans to those that shouldn't even know about them. Stick with a 15 or 30 year mortgage if ya can. I am in a 7/1 arm, and it will probably be adjusting this year. I am concerned about it. We got that loan as we were told that would eliminate our PMI, That wasn't true, we still have PMI. However, the onus was on me to do the research and find out what the deal was with that loan. We will cross that bridge when we get there and deal with that then. Stay tuned.



I also agree the government maybe shouldn't have bailed out the banks. But since they did, the government should have a say in what the banks do. Mind you, I am not a fan of government involvement anywhere in my life or in business. However, if they do get involved, I feel they are now on the board of directors, and should have a say.



I have no idea how to fix it either Ron. I don't know if it is even possible to fix it. Of course the more money a person/company has, the better footing they have. It is the way of America.

 

[R K]

Dart stopped evictions more then a year ago, as he was positioning himself for a possible run. I have no doubt about that. Just my opinion there.Ain't no one gonna convince me otherwise. I do agree, if someone is getting evicted illegally, then I truly hope that financial institution is torn a new one, and the higher ups that made it happen face jail time. The folks I see are usually 18 to 24 months behind in their mortgage payments. They are not just a little behind the 8 ball or just a few months behind. Most have already moved on with their life. There have actually been a couple of evictions I have done where the owner opens the door door and sees the sheriff and literally said "thank god you're here. Now I don't gotta worry about this place" and gives him the keys.



Banks have modified many a loan, but I am with you there too. They aren't modifying shit unless it benefits them. That is business. Are you telling me a business of any type should take less compensation then what was agreed too? They don't have to modify shit. Again, if they took money from the government, or the U.S. taxpayer, they should absolutely help anyone asking for it.



The minute our neighbor said he had an interest only loan back in 05, I knew he would be in big trouble. The financial institutions I think were a bit too aggressive trying to get people into houses and loaned money to folks who couldn't afford them, or give creative loans to those that shouldn't even know about them. Stick with a 15 or 30 year mortgage if ya can. I am in a 7/1 arm, and it will probably be adjusting this year. I am concerned about it. We got that loan as we were told that would eliminate our PMI, That wasn't true, we still have PMI. However, the onus was on me to do the research and find out what the deal was with that loan. We will cross that bridge when we get there and deal with that then. Stay tuned.



I also agree the government maybe shouldn't have bailed out the banks. But since they did, the government should have a say in what the banks do. Mind you, I am not a fan of government involvement anywhere in my life or in business. However, if they do get involved, I feel they are now on the board of directors, and should have a say.



I have no idea how to fix it either Ron. I don't know if it is even possible to fix it. Of course the more money a person/company has, the better footing they have. It is the way of America.

No it's not. America BAILED THEM OUT! What part of that arent you getting? If it were "the way of America" they'd have been allowed to fucking fail! Period. The financial institutions which you've tried to defend a couple of times in this debate are the MOST at fault. They lent the MONEY! They gave the "interest only loans" you mentioned. They allowed these people to bury themselves. Now they do NOTHING, with tax payers money in many cases. They hold it close to the vest. It's NOT "America's WAY". Far from it there Jako.



Most people losing their homes are WAY BEHIND. Why, because in many cases the BANK is not willing to give them ANY capitol. It's better to lose a little than take the "RISK" they created in the first place. Forget those idiots that were just idiots. It's come to the point where HONEST folks are now being screwed out of their Homes. It's no longer just the idiots Jako. I'm sure there are some bad apples but again if there are 1-2 GOOD APPLES, that's the tragedy. I have no doubt you run into some shady characters but the point is they dug the hole for a majority of these folks.



Just wait and see how many of these "foreclosures" were actually Legal. I'm going to guess a staggering amount were not. Who really get's hurt in this mess, guys like Tater, or BHP on the purchase of their new home. Those are the ones that get hurt.

 

[jakobeast]

No it's not. America BAILED THEM OUT! What part of that arent you getting? If it were "the way of America" they'd have been allowed to fucking fail! Period. The financial institutions which you've tried to defend a couple of times in this debate are the MOST at fault. They lent the MONEY! They gave the "interest only loans" you mentioned. They allowed these people to bury themselves. Now they do NOTHING, with tax payers money in many cases. They hold it close to the vest. It's NOT "America's WAY". Far from it there Jako.



Most people losing their homes are WAY BEHIND. Why, because in many cases the BANK is not willing to give them ANY capitol. It's better to lose a little than take the "RISK" they created in the first place. Forget those idiots that were just idiots. It's come to the point where HONEST folks are now being screwed out of their Homes. It's no longer just the idiots Jako. I'm sure there are some bad apples but again if there are 1-2 GOOD APPLES, that's the tragedy. I have no doubt you run into some shady characters but the point is they dug the hole for a majority of these folks.



Just wait and see how many of these "foreclosures" were actually Legal. I'm going to guess a staggering amount were not. Who really get's hurt in this mess, guys like Tater, or BHP on the purchase of their new home. Those are the ones that get hurt.

Hey, big guy, I am not disagreeing. You are misunderstanding me. The way of America, meaning THE MORE MONEY YOU HAVE, THE MORE OPTIONS YOU HAVE TO GET OUT OF TROUBLE. For instance, OJ. If he was a bus driver, he would be Orenthal the bus driving wife killer.



I am NOT defending the banks. Try reading sometime. Maybe It comes off as such, but believe me, I am not. Knowing what I know, working where I do, I have and insight to some of the crap going on. I don't need a piece of paper or 3 hanging on my wall to see the bullshit that is happening.



Fannie Mae and Freddie Mac have given the go ahead with continuing the processes. BOTH of those are government agencies. Fannie Mae, or FNMA, Federal National Mortgage Association has said that the loans they back, just about EVERY SINGLE LOAN OUT THERE, has said they haven't come across any malfeasance as of yet. That was after stopping everything, not just evictions, but closings too. We couldn't show, market, or sell any houses for about 2 months. How do you think that effected us?



They still have a shit ton of paperwork to go through, but they are satisfied so far that no one was booted illegally. Fannie Mae wants homeowners. freddie mac wants homeowners. Why? because they will pay the taxes at the local, State, and Federal level.

 

[BlackHawkPaul]

I'm not hurting as much as people that bought before the housing crash. What is unfortunate is that Marcy and I were rookies at purchasing a home, and we probably could have bought our house for much cheaper than what we settled on. I can't complain much, because we still bought it for 50% of what it was worth in 2006.

My problem is the job market (well, my wife's problem-- but we're in this together).

With the economy crashing, it affects disposable incomes, and that hurt the art industry along with many others.



We're fortunate that I'm such a tight-ass with our collective funds.



Now I can share my personal opinions on the bailout(s) all I want. The real focus still needs to come to the people who are barely scraping by on expiring unemployment checks.



When $9/hr jobs have applications 1000 deep, something is fucked up.

 

[R K]

Hey, big guy, I am not disagreeing. You are misunderstanding me. The way of America, meaning THE MORE MONEY YOU HAVE, THE MORE OPTIONS YOU HAVE TO GET OUT OF TROUBLE. For instance, OJ. If he was a bus driver, he would be Orenthal the bus driving wife killer.



I am NOT defending the banks. Try reading sometime. Maybe It comes off as such, but believe me, I am not. Knowing what I know, working where I do, I have and insight to some of the crap going on. I don't need a piece of paper or 3 hanging on my wall to see the bullshit that is happening.



Fannie Mae and Freddie Mac have given the go ahead with continuing the processes. BOTH of those are government agencies. Fannie Mae, or FNMA, Federal National Mortgage Association has said that the loans they back, just about EVERY SINGLE LOAN OUT THERE, has said they haven't come across any malfeasance as of yet. That was after stopping everything, not just evictions, but closings too. We couldn't show, market, or sell any houses for about 2 months. How do you think that effected us?



They still have a shit ton of paperwork to go through, but they are satisfied so far that no one was booted illegally. Fannie Mae wants homeowners. freddie mac wants homeowners. Why? because they will pay the taxes at the local, State, and Federal level.

LOL! You mean us as taxpayers, since we, the tax payers, own those two companies. Unfortunately they aren't doling out the cash!



As for the insight Jako, reading will get you the same. You do need those pieces of paper. They say a lot more than you think. It means I can read. If you mean something other than what you are typing get those pieces of Paper it will help in your articulation.



And these companies are doing SO MUCH incorrectly the FED as you so nicely point out above are just scratching the surface.



The Mortgage fiasco was the last place they've visited.





Now go kick somone one out of their house! And please don't get shot cause I still love you.

 

[R K]

I'm not hurting as much as people that bought before the housing crash. What is unfortunate is that Marcy and I were rookies at purchasing a home, and we probably could have bought our house for much cheaper than what we settled on. I can't complain much, because we still bought it for 50% of what it was worth in 2006.

My problem is the job market (well, my wife's problem-- but we're in this together).

With the economy crashing, it affects disposable incomes, and that hurt the art industry along with many others.



We're fortunate that I'm such a tight-ass with our collective funds.



Now I can share my personal opinions on the bailout(s) all I want. The real focus still needs to come to the people who are barely scraping by on expiring unemployment checks.



When $9/hr jobs have applications 1000 deep, something is fucked up.

Good post.

 

[jakobeast]

LOL! You mean us as taxpayers, since we, the tax payers, own those two companies. Unfortunately they aren't doling out the cash!



As for the insight Jako, reading will get you the same. You do need those pieces of paper. They say a lot more than you think. It means I can read. If you mean something other than what you are typing get those pieces of Paper it will help in your articulation.



And these companies are doing SO MUCH incorrectly the FED as you so nicely point out above are just scratching the surface.



The Mortgage fiasco was the last place they've visited.





Now go kick somone one out of their house! And please don't get shot cause I still love you.

See? We agree on what we are saying, just going about saying it differently.



I don't kick them out of their houses. I merely change the locks. And get paid for it. And spend that money. And help the economy. See? I am awesome.



I haven't been shot yet, I have been threatened to be sued. Either way, I have a job to do.



I love you too daddy.

 

[R K]

I am NOT your Daddy. I told megan to quit telling you what to say!

 

[E Runs]

15% ain't bad, but we are seeing a lot of banks pushing for 20%. It also helps if the market keeps dropping.



It hasn't bottomed out yet folks. There are literally millions of properties in shadow inventory. depending on who you talk to there is anywhere between 2 and 6 million properties more than 4 months behind in their mortgage payments. I consistently see properties that haven't had a payment made on them for 18 months or more.

Back 34 years ago when my parents bought their house you have to have at least 15-20%.



People were sold a bill of goods that everyone could afford to own a house and it wasn't true then and as we see it sure as hell aint true now. Not only that but **** buying an older house, get a new one! Who cares if it's some cookie cutter building that was built as fast as possible in Anywhere, USA? It came with stainless steel appliances that make your dick hard and your pussy wet. The ecenomy was rolling, Joe Sixpack was employed buiding everything and no one gave a thought about when the whole house of cards would come crashing down. The whole thing was built on greed from the banks who offered the loans to people they never would have 30 years ago to people who signed on the bottom line thinking, "**** it, when the principle comes due we'll just flip the thing and make money off it".

 

[Kerfuffle]

Short sales are very common these days and therefore the process to get one approved has become much more rigid. As someone who dabbles in RE investing I have seen the process over the past 10 years. 10 years ago it was not common, and few investors understood the game. Today, it's not only commonplace but lenders have policies and guidelines around it, the process you have to take, lots and lots of steps, to at the end have someone either say yes or no to your proposal.



As a short sale investor, one would look for properties/sellers in foreclosure or behind in payments in which the seller owed more than the property was worth (underwater). In order to do a short sale the property MUST be behind in payments, the seller must be able to prove hardship and include that their situation is not likely to change soon, you must provide pictures of the property (the worse the better), you prepare a package for the lender with comps and other figures, and the seller must first list the property with an RE agent before the lender will consider a short sale. If a short sale is approved the seller will either receive a 1099 tax form for the amount the lender had to 'eat' or a deficiency judgement. Only the deficiency judgement will affect the seller's credit. That is why it's important for a good short sale investor to push the lender to accept payment in full withOUT pursuing the deficiency judgement. The seller will receive one of the two - it is better if they receive the 1099 as it will not hurt their credit. The problem of course is the 1099 puts the seller on the hook for the taxes of the amount the lender had to eat.

 

[FlaHawkFan]

Fluff, what exactly DON'T you dabble in? Seems to me you're a jack of all trades and a master of none.

 

[Kerfuffle]

Fluff, what exactly DON'T you dabble in? Seems to me you're a jack of all trades and a master of none.

Do you buy stocks, have a 401k, other investments? Well, so do I, including rental property. I'm not a full time real estate investor nor am I working full time on day trading for my stock portfolio. So despite the cheapshot I'm pretty much like every other hard working American.

 

[jakobeast]

Short sales are very common these days and therefore the process to get one approved has become much more rigid. As someone who dabbles in RE investing I have seen the process over the past 10 years. 10 years ago it was not common, and few investors understood the game. Today, it's not only commonplace but lenders have policies and guidelines around it, the process you have to take, lots and lots of steps, to at the end have someone either say yes or no to your proposal.



As a short sale investor, one would look for properties/sellers in foreclosure or behind in payments in which the seller owed more than the property was worth (underwater). In order to do a short sale the property MUST be behind in payments, the seller must be able to prove hardship and include that their situation is not likely to change soon, you must provide pictures of the property (the worse the better), you prepare a package for the lender with comps and other figures, and the seller must first list the property with an RE agent before the lender will consider a short sale. If a short sale is approved the seller will either receive a 1099 tax form for the amount the lender had to 'eat' or a deficiency judgement. Only the deficiency judgement will affect the seller's credit. That is why it's important for a good short sale investor to push the lender to accept payment in full withOUT pursuing the deficiency judgement. The seller will receive one of the two - it is better if they receive the 1099 as it will not hurt their credit. The problem of course is the 1099 puts the seller on the hook for the taxes of the amount the lender had to eat.

It is rare for a person to get the 1099. Banks are setting things up so it still effects a persons credit.

 

[R K]

It is rare for a person to get the 1099. Banks are setting things up so it still effects a persons credit.

If you the seller are going down that route your credit is fucked up already. There is no way. The financial institution has already "dinged" you. No question.

 

[jakobeast]

If you the seller are going down that route your credit is fucked up already. There is no way. The financial institution has already "dinged" you. No question.

Oh, no doubt. But just like a bankruptcy is on your credit for 7 years, these other options(deed in lieu, short sale) stay on there as well. I think for only a couple 2 or 3 years.