2011: A Year of foreclosure, Strategic Defaults and Much More

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Real Estate Agent with License # 01767321 BRE# 01767321

2011: A Year of Foreclosure, Strategic Defaults and Much More

Okay, so I was reading this article on the HousingWire.  Here is a quote from the first paragraph, "RealtyTrac is calling 2011 the year of foreclosure litigation, strategic default, failing foreclosure law firms and shadow inventory."  Kind of interesting, if you ask me.  Foreclosure litigation... who would have ever thought!

I mean, really, if you get foreclosed on, it's for a good reason like you didn't keep up your end of the contract, right?  But with banks failing right and left and other loans being sold and transferred (and not properly, I might add) without signatures or other processes, there have been many mistakes made.  One that comes to mind is the neglect of the banks to transfer all loans into their own names - Countrywide to Bank of America comes to mind. Those deeds never were re-recorded, so does that make them invalid?  Some courts say yes and others say no.

Let's take strategic default.  Some would say that the house the own has a loan that is much higher than what the property itself is worth now.  For some of those folks, they have chosen not to make their payments to get out from under a home that isn't worth the money.  Others have said, "A deal is a deal" and know that the loan they got was/is a valid contract according to the time and value of the original contract.  This has caused more of an issue with lenders as some are allowing the strategic defaults to become short sales and not foreclosures.  It kind of reminds me of a parent allowing bad behaviors and then saying it wasn't their fault.

A lot of law firms specializing in foreclosure and modifications have gone by the wayside.  Modifications are few and far between now and since there is legislation that doesn't allow for charging a fee up front, many agencies have stopped doing modifications all together.  It puts a damper on any business when they lose a line of product and the money it generates.

This article was really interesting with more detail and subtleties than I have time for in this blog.  You should really click on the link above and read about it for further information.

In the meantime, I wish you and your loved ones a marvelous New Year.  Here's looking to the new and exciting prospects this brings!

champagne

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Serving the 210 Corridor - the cities of Monrovia, Duarte, Azusa, Glendora, San Dimas, La Verne, Claremont, Upland, Pomona, Chino, Chino Hills, Rancho Cucamonga and Fontana - wherever the need arises.

Warmest Regards,

Linda K. Mayer, Realtor, SRES

License # 01767321

A Realtor you can Trust!

(626) 824-8927 Cell

LindaKMayer@live.com 

 

 

 

 

 

 

 

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Rainer
187,082
Kristal Wilson
Keller Williams Costal Properties - Long Beach, CA
Making your real estate transaction kristal clear!

Hi Linda ~

I have been keeping an eye on real estate news and think we will see a large rise in short sale transactions this year based on the changes we have seen in legislation. It's the new reality of So.California real estate. But I want to wish you and yours.....

Happy New Year!

December 30, 2011 04:39 PM #1
Rainmaker
597,607
Don Sabinske
Don Sabinske, Sabinske & Associates Inc. - Zimmerman, MN
Sabinske & Associates Inc.

Best wishes for a happy, healthy and prosperous new year.....and don't pay any attention to those who think they know the real estate market.  It is all local....

December 30, 2011 05:38 PM #2
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293,451
Linda K. Mayer
License # 01767321 - La Verne, CA
Realtor, SRES, SoCAL, A REALTOR YOU CAN TRUST

Hey Kristal!  Happy New Year and have a marvelous weekend.

Don, I know.  They really aren't true to the local areas.  But it was interesting info!  Happy New Year!

December 30, 2011 05:44 PM #3
Rainmaker
1,208,715
Elizabeth Weintraub Sacramento Real Estate Agent, Top 1% of Lyon Agents
Lyon Real Estate - Sacramento, CA
Put 40 years of experience to work for you

A client told me the other day that one of the lawyers I had referred him to for legal advice turned him over instead to a partner. The partner wanted to charge him $8 or $10K to file suit against the lender, and he claimed to enjoy a 70% success rate. Guess I am no longer referring any clients to this lawyer. Man, send them to a lawyer to get advice on a short sale and the lawyer tries to snag them to file suit instead? What is that all about?? We know what that is about.

December 31, 2011 03:48 PM #4
Anonymous
Anonymous
Anonymous

Happy New Year!

January 01, 2012 01:15 PM #5
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Linda K. Mayer

Realtor, SRES, SoCAL, A REALTOR YOU CAN TRUST
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