forclosures up 97%

[Bronko]

Originally Posted by Raven

the news announcers are saying that the stimulus package is going to be
some kind of rescue for all these Americans loosing their homes


they have to be on drugs to believe that ...let alone be saying it....

it's complete plain and simple

Also, not that it will change the sentiment of the thread, but foreclosures are up 79% not 97%.

[Backbeach Jake]

I had a comptroller for a major string of auto dealerships tell me once that a salesman hasn't done his job if he didn't get every dime that a buyer had for an auto for the term of the payment. Sounds like the infection has spread to housing. Predatory lenders thinging everyone is a sucker to be played. There's a lot of hard working folks out there who have watched their "American Dream" die a horrible death. It'll never come true now. Because their lenders did not have the moral fiber to explain what a sub-prime was. Not to mention an economy tanking like Red October. Sure there's some money out there, They just printed us a tax refund. It's sad.

[justplugit]

Originally Posted by Clammer

had one poor kid that had a 1005 loan .. a 80 & a 20 >>> his girl left him & he couldn't make the payments ..

In the 60's you could only get a mortgage based on 1 household member's salary. Protected the bank and the mortgagee.

Rule of thumb was you could only afford spending 25% of your salary on the mortgage.

Then when most women entered the workforce they opened it to 2 salaries, which is great, till times get tough and 1 looses a job or gets sick. (

[Raven]

Originally Posted by Bronko

Also, not that it will change the sentiment of the thread, but foreclosures are up 79% not 97%.

they are up 97% since December 2006

[Clammer]

B/J

your right ;;
some buyers got f $%^&* but others were stupid >>>>>>>>>>>>> but it didn,t stop there // I heard the bankrupsy court is overflowing every single day >>. a descent amount of realtors /But a ton of mortgage originators / who also ready making a killing on the 80-30>. 70 -30 ,s had to know it wasn,t gonna last .. but they spent like it was >>>>>>> now SOL & out of work ;;
the buyers / on the subprime loans / mostly had fescent jobs / little money & fair credit at best >>>>> they were lead to believe that in a year to 18 months they would be able to refi >>>>>>>>>>>>> never happened ;
then ya got the buyers that had good credit & jobs & a little money >>. bUt with the market being hot &//& values increasing they didn,t want to settle [even }with the interest rate being approx 5.68 >.they took 3 & 5 years arms @ a 4= interest rate >>>>>>>>> now its time to lock in & they can,t make the lockin in payment // arms are great if you only plan on stayin a couple of years or your company will cover your ass when you relocate ;;
then you have the buyers that bought 2000 - 2003 .. that still wanted the house & all the toys >>>> so they just kepy refi ing ;;
Just this past year I had to turn down at least a dozen clients that asked me to sell their homes ;;
before I even did comps >.I,d check on what they paid .. see if they both had new SUv,s & I knew I couldn,t help them >>> they were upside down in the value of their homes >>> In otherwords ...they took the equity & didn,t put it back into their property // now its worth // alot less than what they owe // so they can,t refi ;;

it was/is a combination of many factors & people & it is truly a Cluster f #$%^&* &&&& its far from over ;;

If you have access hard cash >>. take it out of the stock market or notes & buy properties right >>> && when this does turn around / those that are doing that were wealthy before // will become alot more than wealthy

[Bronko]

Originally Posted by Clammer

B/J

your right ;;
some buyers got f $%^&* but others were stupid >>>>>>>>>>>>> but it didn,t stop there // I heard the bankrupsy court is overflowing every single day >>. a descent amount of realtors /But a ton of mortgage originators / who also ready making a killing on the 80-30>. 70 -30 ,s had to know it wasn,t gonna last .. but they spent like it was >>>>>>> now SOL & out of work ;;
the buyers / on the subprime loans / mostly had fescent jobs / little money & fair credit at best >>>>> they were lead to believe that in a year to 18 months they would be able to refi >>>>>>>>>>>>> never happened ;
then ya got the buyers that had good credit & jobs & a little money >>. bUt with the market being hot &//& values increasing they didn,t want to settle [even }with the interest rate being approx 5.68 >.they took 3 & 5 years arms @ a 4= interest rate >>>>>>>>> now its time to lock in & they can,t make the lockin in payment // arms are great if you only plan on stayin a couple of years or your company will cover your ass when you relocate ;;
then you have the buyers that bought 2000 - 2003 .. that still wanted the house & all the toys >>>> so they just kepy refi ing ;;
Just this past year I had to turn down at least a dozen clients that asked me to sell their homes ;;
before I even did comps >.I,d check on what they paid .. see if they both had new SUv,s & I knew I couldn,t help them >>> they were upside down in the value of their homes >>> In otherwords ...they took the equity & didn,t put it back into their property // now its worth // alot less than what they owe // so they can,t refi ;;

it was/is a combination of many factors & people & it is truly a Cluster f #$%^&* &&&& its far from over ;;

If you have access hard cash >>. take it out of the stock market or notes & buy properties right >>> && when this does turn around / those that are doing that were wealthy before // will become alot more than wealthy

I agree clammer. Cash is king right now. There will be some incredible opportunities out there for level headed investors who have kept their powder dry. I work with a lot of investors who have been on the sidelines for 2 years and they are all warming up in the bull pen.

[riverrat55]

Some of these buyers were in it for the quick buck!!!
Buy it now at an adjustible rate(4percent interest) for 5 years!!!
Sell out at end and make 200,000 grand due to rising real estate market!!!
When market burst, so did their investment bubble!!!

[Jenn]

Well I agree with some and disagree with others.....I am not what you call "good with my money" by ANY means and have my fair share of debt but we bought a house 4 years ago and I have to say were were SHOCKED when we were told what we were approved for.....it was well over twice we we agreed we could afford. There are a lot of people out there trying to keep up with the Jones's that would have gone for it....and I am sure they did and are now being foreclosed on. I am glad we didnt fall for it because thats exactly where we would be right now if we bought all the house the bank said we could afford.......

Should the lenders be to blame or the individuals for not taking responsibility for their own spending?

[Duke41]

I am a real estate broker and witnessed first hand how the mortgage crisis developed. The market price for housing was rising at a steady 20% clip from 2001-2005. The subprime lenders were coming up with programs to allow everyone and anyone to buy a home. There were two common scenarios first there were homebuyers with little or no down payment. They would typically get this 20/80 loans the idea there was to avoid PMI insurance, with a cheaper alternative and at the time PMI could not be deducted from you taxes as could the interest from each end of the 20/80 loan. The 80% loan was very close to the going rate at the time and the 20% loan was a few 3-5 points higher. The idea was to get into the home wait until the value rose enough for you to have 20% equity and then refi into a 30 yr fixed at a lower rate. There are two major flaws with this plan. First most of the 80% loans were variable rate locked for 3 years, second the home values did not increase as thought but actually decreased in value. So this has lead us to the current crisis were the loans have adjusted to higher rates and there is not enough equity in the home to refi out of the loan and into a better rate.

The other scenario was the folks were taking interest only loans so they could afford a larger or better house. The idea was to have low payments and then as you earned more money or got you financial house on order you could do a refi and be okay. Also folks brought property this way with the intent to flip the house after a year or two and make big bucks. Again the got caught in a declining market and can not refi into a better loan because they have no equity in their home.

I also heard about shady mortgage brokers and raw deals for uneducated buyers and in 2004 pulled my buyer out if a closing upon reviewing the HUD and noticing that the interest rate was 1 point higher and the closing costs were 50% higher than what was promised.

So where does this leave the folks in trouble. You have a few options. The first of which should be to call your bank and tell them you need to redo your loan. The banks will do, this I have helped folks so far with CITI Mortgage and Washington Mutual. The next choice would be a short sale.. that is a bank approved sale for less than whats owed the bank. I have done 6 of these since October. They are doable if your property and yourself hit the right criteria. Third you can let the place go into foreclosure, this is a tough decision as the banks will bury your credit rating. However if you were treated unfairly or there is any issue with your loan documents or with the HUD you have state agencies in MASS and RI that will get involved and help you get things straightened out.

If you or anyone you know needs some help with this PM me and I can point you in the right direction. Also Clammer is very experienced as well. Don't let the bastards get you down they act like they are holding all the cards.. trust me they aren't.

[Raven]

pm sent

[tlapinski]

Interesting thread... I work for the largest FCL law firm in CT. I have been here for just over 4 years now and have seen things from many different sides. Just after I started working , we had to cut back a LOT of employees because there just wasn't enough business. On a "good" week, we would get 50 referals (new foreclosure actions). Now, on a very slow day, we have over 100 referals. We cut back to about 50 employees and a handful of attorneys in the slow days, to now having over 150 employees, 20+ attorneys, and we are still growing. While the topic of the day is the rising foreclosure rate and shows like 20/20 and 60 minutes want to jump all over the lenders for screwing things up, they are not completely to blame. Lenders gave too much money to people that shouldn't get it AND people took advantage of this and took out loans that were too big AND the mortgage brokers taking advantage of this scenario. I had one FCL over this past summer. The debtor had an odd last name, so it stuck with me. On Saturday of his auction, I happened to be reading the local paper. There was a cover story about this guy and his situation. His mortgage broker fudged his loan applications to make it look like he was making more money than he was, deposited something like $10K of her own money into his account, then pulled it after the closing. He was making something like $1200 a month at the casino, and he had a $2500+ per month mortgage. Yeah, that didn't last long. Who is to blame there????

Then you have the dirtbags that took out these loans a couple years back on a bunch of multi-family homes, collected rent from the tenants, and never paid a dime back to the bank. There are ways to drag out a foreclosure action for years and years. All this time you keep collecting rent, not paying the mortgage, and getting rich. Sure, your credit is pretty much screwed for life, but you now have a giant pile of cash sitting in your bank account. I have seen this So many times that it is sickening. There is actually a guy in the SW part of Ct that has over 100 loans in FCL. He went around a few years back buying properties below value from mentally disabled people that were falling into financial trouble. He basically bought the property at a lowere than market price to bail them out, jacked up their rent which, evicted them, then brought in new tenants and kept all of their rent. He has a great scheme going because he is so experienced in what banks will take for a short sale just to recoup something. I Googled his name one day just to see what I could find. It was all I could do not to speak my mind to him when he and I spoke a short time later.

The stage of the FCL that I handle involves the actual auctioning off of your home. I deal with people at the end of the line and have heard and seen just about everything. We even had a guy compeltely level his home to stop the foreclosure. He took out demo permits with the town, hired a demo crew, and left a parking lot in place of the house. Funny thing, it worked for a while. The bank eventually settled with him by accepting a short sale just so they could recover something. Some days I think about writing a book on how to prolong the foreclosure process....

[Raven]

Tlapinske wrote: Some days I think about writing a book on how to prolong the foreclosure process....


talk about SCAMS !!x 10

if nothing else you should be interviewed on TV

PM sent