BANKS HALTING FORECLOSURES........? IT TOOK LITIGATION TO DO SO.......

By
Real Estate Broker/Owner with People first then business! Ran Right Realty Riverside, Ca BRE LIC #636943

In several articles that just came out, the banks are halting the foreclosure processes because they found errors in their procedures....These errors are being brought to the surface via lawsuits filed by foreclosed upon homeowners who fought back

Let's not debate weather someone should be in foreclosure or not. Instead, I just wanted to mention how the 3 foot hole that the banks found themselves in has just turned into a 6 foot hole...of their own doing.

Why would the banks not heed the advice of trying to work things out with homeowners....? Because the government offered them a cushion or bail-out enabling them to conduct irresponsible business practices and when that failed, guarantee their recovery.....no matter what

Now, where did all the money that was lost really go....? What you will not hear about is from the people who made fortunes. They got in and out with the money and then went underground.....

POINT OF THE POST: What is so hard about rolling back interest rates, lowering monthly payments or reducing principal amounts......? Surely anyone who has had to depend on cash flow knows the value of having something coming in versus nothing coming in.

Just subsidizing millions of people for 5 years so that unemployment and being kicked out of your home doesn't line up. When you lose consumers via their lack of confidence, everyone suffers.......

Now, the courts will be clogged, the Real Estate recovery will be averted, and millions of people would have suffered needlessly...for what....the love of......MONEY  ?

 

 

 

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Tags:
foreclosures
loan modifications
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Rainmaker
453,503
John Mulkey
TheHousingGuru.com - Waleska, GA
Housing Guru

Richie - But thousands of attorneys who might otherwise be unemployed will have found work--albeit "make work" which in the end may serve no good purpose. :  (

Oct 05, 2010 05:08 PM #1
Rainmaker
1,285,870
Richie Alan Naggar Author PEARLS SERIES of books
People first then business! Ran Right Realty Riverside, Ca - Riverside, CA
on LIFE and LOVE plus Real Estate too!

Reminds me of the story of Locusts who travel in gigantic swarms looking for food finally coming across a giant field and devouring it.....At least the Locusts got to eat.......

You know John, why we have to come up with really sophiscated wild Real Estate cycles says a lot....I can handle the normal breathing in and out of the economy....but this...?

Oct 05, 2010 05:12 PM #2
Rainer
172,089
Lisa Orme
The Master's Key Realty LLC -Windsor, CT - HARTFORD COUNTY - Windsor, CT
Broker/Realtor, ABR, CRS,GRI, PSCS, SFR, Notary Pu

It's painful to watch the process of all this. It's all about greed...the love of money..  With unemployment up over 10% for more than a year now, EVERYONE needs to make painful cuts..including the interest rates the lenders are charging. Seems to me that if someone is three or more months behind and can prove a legitimate hardship, they should have an automatic interest rate rollback to 4 or 5% for 12-24 months and all of their missed payments capitalized onto the back end of their loan. That alone would alleviate a lot of stress in the marketplace and probably avoid a couple hundred thousand foreclosures!

Oct 05, 2010 06:24 PM #4
Rainmaker
1,285,870
Richie Alan Naggar Author PEARLS SERIES of books
People first then business! Ran Right Realty Riverside, Ca - Riverside, CA
on LIFE and LOVE plus Real Estate too!

Lisa...I talked with a lady today who has been going through a foreclosure process for 2 years now. She finally received a reduced interest rate which lowered her payment. I reminded her that she is still underwater and would have no way to recapture or create equity. Her response: I am pretending that I am renting for the next 5 years. My children will all be out of school and then I will give up this place. Until then, it serves its purposes.

That's how simple this all really is......and your comment helped us focus even more.....

Oct 05, 2010 07:08 PM #5
Rainer
370,054
Tish Lloyd
BlueCoast Realty Corporation - Wilmington, NC
Broker - Wilmington NC and Surrounding Beaches

Just think of all those "Trustees" who can now retire!!!  Not a very good system and certainly lacking in failsafes!  Greed and bureaucracy all behind the smoke and mirrors.  Ah, yes and all under the blanket of our government's utilization of our tax dollars!

Oct 05, 2010 07:43 PM #6
Rainmaker
1,285,870
Richie Alan Naggar Author PEARLS SERIES of books
People first then business! Ran Right Realty Riverside, Ca - Riverside, CA
on LIFE and LOVE plus Real Estate too!

Tish....you are making sense...it takes years to figure somethings out. I know more about banking than I ever did...through its failing. I know more about Iraq & Afghanistan through war, I know more about oil via our mishandling it and raising gasoline prices through the roof, and finally, all the flaws that our country's systems have are being revealed. None of this is a pretty sight....

Oct 05, 2010 08:07 PM #7
Rainmaker
132,528
Fred Hookham
Keller Williams - Milton, WI

I'm in Wisconsin, and most of the banks named in the order have a significant number of properties in the foreclosure process......Not sure about the effect of the order, or the ripple effects on the local market. No one seems to know about the timeline for these changes.

Oct 05, 2010 09:05 PM #8
Rainmaker
1,285,870
Richie Alan Naggar Author PEARLS SERIES of books
People first then business! Ran Right Realty Riverside, Ca - Riverside, CA
on LIFE and LOVE plus Real Estate too!

Thank you Fred for letting us know the dynamics of your neck of the woods.....We are all learning as we go here it seems......

Oct 05, 2010 10:05 PM #9
Rainmaker
318,934
Ernie Steele
Berkshire Hathaway HomeServices Homesale Realty - Lebanon, PA
Lebanon, PA Real Estate 717-273-3774

I love the post Richie...And everyones interesting comments, especially Lisa's simple solution...Enjoy the day.

Oct 06, 2010 08:25 AM #10
Rainmaker
1,285,870
Richie Alan Naggar Author PEARLS SERIES of books
People first then business! Ran Right Realty Riverside, Ca - Riverside, CA
on LIFE and LOVE plus Real Estate too!

Why thank you Ernie....I agree with you that Lisa rules.....she actually just represents the common thought of many professionals in the biz. Things can get so regulated that we forget it is supposed to serve mankind and not dominate him....Ernie....we got a mess on our hands and people who we pay top dollar are not showing us anything..

Oct 06, 2010 10:12 AM #11
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Rainmaker
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Richie Alan Naggar Author PEARLS SERIES of books

on LIFE and LOVE plus Real Estate too!
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