First of all, that might be the dumbest thing I've ever heard. How can you even quantify that? I mean I know if it was a senior VP there is no way those guys are ever wrong...... Unless they were, lets say, the same senior VPs of the 280 companies that said this whole thing would blow over, or they could whether the storm, or just one more quarter of this foolishness..... Facts like those from those always spot on senior VPs. Thebfgb I'm not asking you to defend these guys or your company, after all this post does make for interesting conversation
60% could pay but......
But they are squandering their money foolishly on food and heat?
But they are <insert any stupid sarcastic thing here>
What is the but? How do they know they could pay? Do people call the servicing department 60% of the time and say "I could pay this bill but I saw on the news the new thing was not to pay so I'm not going to"
Ok next point:
I've been doing this for 10 years now and I've heard of people asking about the whole "how long before they can throw me out" thing but I've never heard the actual converstation at a closing table. I'm willing to bet if I sat everyone I know down in this biz that they would probably say the same thing. Kinda like the girl that went tanning too much and she died because it cooked her organs. Urban Legend. (and if this has happened to you, thanks, your the reason we are in this mess!)
In the real world most people aren't complete bags of scum. Most - doubt there is a stat for this - people want to pay their bills. The number of foreclosures right now is at a record high and it is still such a small percentage of actual home owners. There is just no way that 60% of all people that are currently behind can pay but they choose not to.
They might be able to pay if they don't have the lights on and a car in the driveway, but is that really the ability to pay?
Either way, we will never know the answer to this "senior VP stat" because there is absolutely no way to measure this. On a lighter note: Did you see the post I did about the Bobcats living in the foreclosed property?? I wonder if they have the ability to repay???
Your missing the point to a certain degree. The point is the execs are scratching their heads because they don't know how to apply this to credit policy and how to deal with it right now. As to the number - it obviously has to be an estimate. It can't be an exact number that is 100% quantified. But - remember - this is a very conservative company - if they are giving an estimate that could be that high then believe me - the true number is very high. These guys don't play around with these types of numbers when they give them out.
But - remember - this is a very conservative company - if they are giving an estimate that could be that high then believe me - the true number is very high. These guys don't play around with these types of numbers when they give them out.
And thats why I started this post - to open up the discussion as to why this could be? Because we all know that the mortgage/finance know-it-alls on this website are smarter than execs at a Fortune 500 company. So if they cant figure out the reason i'm sure the collective brain trust on here can.
Wizard Dyn-o-mite!
Joined: 12 Oct 2007
Posts: 227
Location: Charlotte, NC
Great topic of discussion that deserves the attention. I too would be interested to hear from those in the servicing end.
What have been some of the requests in regards to requests for loan modifications and what are they finding when the packages for request are turned in?.... Any one, Bueller, anyone?
There should be a way that the borrower could be forced to pay in a situation like this. I'm sorry, but walking from a property you can afford, and agreed to pay for; should be a crime. JMO
Can a lender place a judgement for the negative balance after sale against a borrower, then keep re-filing it to keep it current in the credit? In a situation like this, I would whole-heartedly support that.
do u hear the music that accompanies the approach of a socialistic bureaucracy?
yea if we had the ability to forcefully audit all mod and hardship applicants, then determine their capacity by pulling the 4506 (ounce of prevention, u know ah fukit) etc. then yes it should be a crime to fall behind just to modify
OR should it?
see here we have a situation where the responsible get it up the donkey and the irresponsible are rewarded. that's not entirely fair either.
This is being allowed for a while to defuse the situation, get some cash out into the system cuz its not going to the bank anyway
and if i was the govt id look at all this and say: f the banks, if these private companies and individuals want to flood the zombie banks with mod apps and it keeps people in the homes, don't cost us a thing until we have to take over the dumbass bank, and it gives people a little more purchasing power (which they will spend the new savings on dumb donkey c**p at TARGET or WALMART anyway...) WHY THE h**l NOT
END GAME = SOCIALIST LINE TO APPLY FOR A HOME or PRIVATE INVESTMENT FIRMS that have so much vacant property to finance for you... its all gonna be the same. Private ownership is about to have serious competition in a few decades.
I don't know if I believe the stat or not but in my years, I have heard many excuses why the mortgage payment wasn't made.
Borrower & wife buy house with FHA financing, seller paid closing costs and seller funded down payment assistance (totaling the allowable of 10% contributions from the seller) and got big check at closing due to tax proration. They make first 2 payments and then wife quits her really great job to stay home with the kids. Reason for quitting great job? Borrower believes God will provide. Nearly a year goes by and they make no payments. Then because they are FHA and early default, lender allows them to refinance and finance in nearly $15K of past dues, attorney fees, major escrow shortage etc. This also brought them current. Two weeks after ink dries on paperwork, wife leaves. It's been another year and borrower is still not making payments. So given the borrower hasn't made a mortgage payment in almost two & a half years, maybe God is providing for him because the lender hasn't locked him out yet!
Maybe another thread should be started for the best excuse that a borrower gives why they didn't make the payment. ...
My understanding UghMtgBiz is that if it is an owner occupied residence, no evidence of fraud (watch stated income folks as this is a gray area) and there has been no cash out drawn for the past 12 mos that a borrwer can simply walk away from the property. Naturally with credit damaged here, but the lender would not be able to come back after the borrower for a foreclosure nor deed in lieu.
Interested to know the opinion or read on this from others from other clients. I met with an attorney on behalf of one of my clients and this is what I was told.
_________________ "Where a door closes, someone always opens a window"
also the lenders I hear are not reacting to the mortgage fraud thing anymore.
Go ahead, audit the docs, wow fraud in the file, get in line; its 1.5 million long.
The way I see it is there is so much human error not much goes down the way its 'supposed to' anyway. Got a waiver of the deficiency, your Deed In Lieu was done right? some more-ron didnt put a piece of paper in the right drawer and 4 years later SURPRISE! Deficiency Judgment!
who knows.
i think almost everyone is an incompetent baboon these days. I may be one too.
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